An advantage in the AI era depends on more than abundant electricity. We examine whether Paraguay can bring its power grid, connectivity, computing capacity, skilled people and cybersecurity together as one industrial foundation.
Paraguay and Taiwan moved forward in May 2026 with a sovereign AI computing center. The idea combines Paraguay’s energy resources with Taiwan’s technological capabilities, but the value it ultimately creates will depend on much more than electricity.
The World Bank groups the foundations of AI around four Cs: Connectivity, Compute, Context and Competency. Infrastructure, computing capacity, data and local uses, and human skills need to advance together to support an AI economy.
MITIC describes an initial phase with 10 MW of computing capacity. It cites market estimates of USD 30–50 million per MW, equivalent to around USD 300–500 million for this stage. It has also described a 50/50 cooperation model in which Paraguay would provide energy and physical space, while Taiwan would provide high-performance equipment.
Expansion needs to be understood in stages. Taiwanese documents envisage 100 MW after a successful pilot and a long-term vision of up to 1 GW. MITIC also says that the future binational entity would require legislative approval in Paraguay.