Narayan AmmachchiParaguay is set to build a mega data center with financial backing from Taiwan as it seeks to capitalize on its abundant hydroelectric power and the soaring global demand for artificial intelligence computing infrastructure.
Taiwan, Paraguay’s only diplomatic ally in South America, will provide US$200 million to finance the project.
According to local media reports, the data center forms part of Paraguay’s broader AI initiative, Yguazu Digital, which the government believes could attract up to US$40 billion in investment over the coming years.
The data center will have an initial power capacity of 10 megawatts and is expected to become operational by the end of 2027.
Once all phases of the project are completed, its total power demand is expected to reach 1 gigawatt (1,000 megawatts), making it one of the region’s largest AI infrastructure developments.
Speaking at a press conference in May, Paraguay’s Minister of Industry and Commerce, Marco Riquelme, said the country’s goal is to transform its surplus electricity into digital wealth.
Under the plan, Paraguay will allocate land near the capital, Asunción, while supplying the project with low-cost hydroelectric power generated domestically.
Riquelme also said the government plans to develop a large number of solar parks to expand the country’s renewable energy capacity. In addition, Paraguay is considering building a gas-fired thermal power plant using natural gas imported from neighboring Argentina to strengthen its energy infrastructure.
According to a Bloomberg Línea report, Taiwan is also in discussions with U.S. technology giants, including Google, Microsoft and Amazon, to secure demand for computing capacity that could be provided from Paraguay.
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