OpenAI Eyes Patagonia Data Center as China Chip Exports Surge and Canada Tariffs Hit Motorcycles

The move comes as local opposition to data centers is rising in the United States. In the first quarter of 2026, at least 75 projects worth about $130 billion were disrupted by local opposition, according to Data Center Watch. Milei began courting Big AI CEOs in 2024 and created a program offering tax breaks and a stable regulatory environment, the newsletter said, citing Reuters.

Patagonia's appeal is partly geographic: it sits at the bottom of South America and is cold, which can reduce cooling costs, one of the more expensive inputs for data centers. The region is remote, but the government plans to invest in more fiber-optic connectivity, and power companies are already there. Poland's Green Capital has leased land in Chubut for wind and solar that could supply energy to data centers, while U.S.-based FlexDomes is looking for data center investors in Patagonia. The OpenAI project remains in the planning phase.

In a separate report, The Wall Street Journal focused on AI as a key reason China's exports and imports are roaring and its trade gap with the U.S. and the rest of the world is widening. The value of China's semiconductor exports rose 130% from a year earlier, up from 117% in July, according to the Journal. The volume of chip exports fell 7.9%. China is benefiting from a global market with tighter supply of conventional memory chips used in phones and computers, the Journal reported, with higher prices masking lower sales.

Canada's tariffs are officially in place against many U.S. products in response to the Trump administration's tariffs, CBC's Paul Haavardsrud told NPR's The Indicator. He said the dispute feels personal to Canadians, citing President Trump's description of Canada as a 51st state and an executive order renaming Lake Ontario 'Lake America.' That has created bipartisan support for Prime Minister Mark Carney to take a hard stance, even if it is financially painful, Haavardsrud said.

The tariffs are more symbolic than punitive, according to Haavardsrud. He said Canada knows about $20 billion in tariffs will not take down the U.S. economy, and is trying to cut 'narrow but deep' by targeting industries in swing states such as Ohio and Pennsylvania to pressure the White House before the midterms. A renegotiation of the USMCA has already been pushed off into 2027. Haavardsrud argued the tariff spat will set the tone for that larger discussion. The newsletter also pointed to Canada's approach to tariffs on motorcycles, including Harley-Davidson, as a prime example of that strategy.

The newsletter also noted that Los Tacos No. 1, a New York City chain popular with young Wall Street workers, has received private equity investment. Online reaction focused on concerns that private equity could lead to cost-cutting measures such as smaller portions and lower-quality ingredients.