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U.S. Firm Plans AI Data Centers Powered by Paraguay's Itaipu Dam

The project could become one of Paraguay's largest private foreign investments, and it will start with 6 megawatts before expanding to 280 megawatts, officials said.

  • U.S. technology company Crusoe announced Thursday a partnership with Paraguayan developer Araico to build artificial intelligence data centers powered by the Itaipu hydroelectric dam, serving customers in the United States and Latin America.
  • Paraguay has long promoted its abundant, low-cost hydroelectric power from the Paran River to attract energy-intensive industries; the dam operates jointly with Brazil as a strategic advantage.
  • The facility will initially draw 6 megawatts of electricity, scaling to 280 megawatts, though pricing discrepancies emerged: Araico proposed $45 per megawatt-hour while ANDE informed union representatives of a $48 rate.
  • Adolfo Villalba, secretary-general of utility workers' union Sitrande, questioned whether the agreement benefits Paraguay and called for greater transparency regarding the rate arrangement with ANDE.
  • Former ANDE engineer Guillermo Krauch warned that rising demand from major investors could pressure Paraguay's power system, emphasizing the need for infrastructure expansion before supply risks emerge from river fluctuations.
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17 Articles

Lean Left

The growth of energy consumption in Paraguay, which has already reduced the surplus of Itaipu's binational hydroelectric power plant destined for Brazil, may gain

·São Paulo, Brazil
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Lean Right

Itaipu opens landfill and frees water volume almost 9x higher than the average of the Falls The United States announced on Tuesday (21) a partnership between an American company and an Paraguayan developer to build a high-performance computing structure supplied by the power of the Itaipu hydroelectric plant, on the border between Brazil and Paraguay. ✅ Follow the international news channel of g1 in WhatsApp According to the United States Depart…

·Rio de Janeiro, Brazil
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Crusoe and Araico will develop in Paraguay a Data Center for AI powered by hydroelectric power from Itaipu.

The U.S. company Crusoe and Paraguayan developer Araico formalized an alliance to install high-performance computing infrastructure in Paraguay, with a first phase planned for mid-2027. The project will be linked to Itaipu’s hydroelectric power supply and seeks to meet the demand for artificial intelligence (IA) and cloud computing services from international customers. According to Crusoe’s announcement, the initiative envisages an initial deve…

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CNN Brasil broke the news in São Paulo, Brazil on Wednesday, October 21, 2026.
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