Paraguay Revises Itaipú Treaty Amid Surge in AI Data Center Investments
Paraguay, generating nearly all its electricity from hydroelectric sources, is attracting international investment in AI infrastructure. In March 2026, Paraguay and Brazil's foreign ministers announced progress on revising the Itaipú Treaty, which governs energy distribution. Notable investments include X8 Cloud's proposed $10 billion to $50 billion AI data center complex and Hive Digital Technologies' expansion of its facility. Paraguay offers abundant renewable energy, low tax rates, and a favorable business environment, positioning it as a key player in the global AI sector.
Paraguay is attracting investments in AI data center infrastructure due to its nearly 100% renewable hydroelectric power. In March 2026, progress was announced on revising the Itaipú Treaty with Brazil, which has long undervalued Paraguay's energy surplus.
AI-curated by TheiaX8 Cloud plans a $10 billion to $50 billion AI data center complex, while Hive Digital Technologies is expanding its hydro-powered facility. Paraguay's advantages include low energy costs, a clean energy matrix, and a favorable tax regime. The country has a current power ceiling of 5GW, which officials view as an opportunity for growth through alternative energy and private investment.
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