Ex-US ambassador Noah Mamet: ‘I’m such a big believer in Argentina’
EXCLUSIVE INTERVIEW Amazon ‘seriously’ studying whether to construct its largest data centre in Latin America in Argentina, reveals former US ambassador, as he sat down with the Times to discuss his hopes for the country’s tech, beef, tourism, wine and re
Amazon. Mendoza wine. Disney. Beef. Tourism McDonald’s. Former US ambassador Noah Mamet is back in Argentina and he’s returned with a laundry-list of big-name clients, hoping to deepen foreigninvestmentinthecountry.
Utilising his knowledge and connections, Mamet has spent the past week meeting with government officials and business players, preaching the advantages of investing in Argentina’s stuttering economy and lauding the reforms of President Mauricio Macri’s administration.
“What I had promised President Macri and others is that I would move back and live parttime here in Argentina, go back to the private sector, but continue to do everything I could to help Argentina, because I’m such a big believer in the country and the direction of the country,” Mamet said in an interview with Times this week in BuenosAires.“There’sbeenbig challenges. But I said I would continue to bring investors to Argentina and help Argentine companiesexpandintotheUnited States and other countries around the world.”
Now working with both his own firm and as a consultant for the massive international law firm DLA Piper, Mamet is advising mega-corporations like Amazon, Disney and McDonalds, while hoping to corral investment into Argentine industry, from beef, tourism, wine and renewable energy.
On tech, Mamet revealed Amazon is considering deepening its investment in Argentina, mulling in the coming years whether or not to build the largest data centre in Latin America here. Competition to host the tech giant’s next data centre is fierce,withChileandArgentina said to be in direct competition.
Mamet maintained, however, that the final word on the creation of a new data centre ultimately rests with the company.
WhileAmazonhasnotrevealedanyfutureinvestmentplans, the company has committed to opening an “Edge” centre in Buenos Aires Province through Amazon Web Services (AWS), its hugely successful wing. The
move, confirmed earlier this year by the global tech giant, will improve the speed and quality of the cloud system in Argentina.
“This new effort they’ve announced will be over a US$40million investment, and it could lead to a larger investment,” Mamet told the Times. “They’re continuing to study whether or not to do a very large-scale data centre, which would be the largest in Latin America and they are very serious in looking at Argentina.”
AWS’ revenue in the secondquarter of 2019 rose to US$8.38 billion compared to US$7.7 billion in the first quarter, making it one of Amazon’s most lucrative subsidiaries.
Mamet said Amazon and other tech companies were enticed by Argentina because of its highly-educated workforce, widespread knowledge of English and one-hour time difference with the east coast of the United States.
“You don’t have some of the otherinherentchallengeswhen it comes to other industries, because you just don’t have export-import issues as much,” he said. “Data centre companies look at Argentina as a good place to be. That sector in general is growing and potentially, it could grow dramatically.”
Mamet also highlighted Disney, another client and major investor in Argentina. The entertainmentgianthasasizeable office in the provincial city of Pilar, where the majority of Disney’s Spanish-language content is exported from. The company translates television, feature film and radio programmes there.
“I don’t think many Argentines realise what a big operation Disneyhasrighthere[inArgentina],” Mamet said. “It’s not a theme park, but it’s a very big business.”
DOMESTIC INDUSTRIES
Other projects on Mamet’s list include domestic industries like wine and beef. Earlier this week, he met with Mendoza’s provincial government to discuss potential agreements between Argentine and US wine companies that he said could transform the area into a wine tourism “hub,” replicating California’s wine industry.
“What I would like to see are more agreements on agriculture between companies that are in California and Argentina,” Mamet said. “Right now, any agriculture company, no matter what products you do, you can only supply half the year. But if we have joint agreements between US and Argentine companies, they could then supply year-round. That’s one of the things we’re working on now.”
The former US envoy is also embracing the Macri administration’s initiative to internationalise the local beef industry. With the first shipment of Argentine beef arriving to the west coast of the United States this weekend after a 17-year stall in exports, Mamet – who helped negotiate the early phases of a deal during the Barack Obama administration – called the local beef industry a “huge opportunity” for investors.
“The first-year quota is 20,000 tons that is allowed to the US,” Mamet said. “That could and should grow in the future. That’s the first year.”
In September, the ex-ambassador will host an event in Los Angeles alongside local celebrity chef Francis Mallmann to promote the expansion of Argentine beef on the west coast.
Since Macri took office, Argentina has gone from the 17th largest exporter of beef world
“When I arrived here in January 2015, YPF told me that less than one percent of the energy came from renewables. I was shocked. It is the future of Argentina in many ways.”