Paraguay Risks Becoming a Cheap Power Source for Foreign Data Centers, Expert Warns
Luis Benítez, a cybersecurity expert, cautions that Paraguay may not benefit significantly from foreign investments in data centers, as much of the capital will not circulate within the local economy. He warns that the country could merely serve as a low-cost electricity source for large tech companies. The projected future data center projects highlight Paraguay's energy consumption potential, with a significant energy demand from companies seeking to capitalize on low electricity rates in the region.
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Luis Benítez, a cybersecurity expert, warns that Paraguay may not gain substantial benefits from foreign investments in data centers, as the majority of funds will be spent on imported equipment and expertise. He describes data centers as industrial facilities requiring constant temperature and humidity control, which demand high energy consumption.
The largest center in Paraguay consumes 512 kilowatts, while cryptocurrency centers use about 100 megawatts. Although companies like Amazon and Google profit in the cloud market, Paraguay's local market is still underdeveloped.
Lack of digitalization and local certified professionals limits the potential for economic gain from these investments. Benítez emphasizes that without public policies for technology transfer, the country risks missing opportunities for local skill development.
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