Why is Paraguay attracting data centers?

Paraguay’s electricity mix relies on large hydroelectric plants such as Itaipú, Yacyretá and Acaray. MITIC and MIC have proposed turning that energy base into digital activities with greater added value, including AI, cloud services and data centers.

For an operator, cost and long-term availability matter. But national abundance does not replace the operational question: how much power can be connected at a particular site, when, from which infrastructure, with what quality, redundancy and contract?

ANDE is building the approximately 200 km, double-circuit 500 kV Yguazú–Valenzuela line to strengthen transmission capacity and reliability. The Master Plan also includes strategic works such as the second 500 kV Itaipú–Villa Hayes line.

After a system event in February 2026, ANDE explained that a double contingency during high demand affected a grid that did not yet have the necessary transmission-level redundancy. This evidence requires distinguishing abundant generation from a fully redundant grid for large loads.

CONATEL’s Fixed Internet report shows that international connectivity rose from 195 Gbps in 2019 to 1,927.68 Gbps in 2024. CONATEL also reports that Universal Services Fund projects brought fiber optics to 249 municipalities.

These are signs of national expansion, not guarantees of multiple carriers, physically separate routes, dedicated capacity or latency to cloud hubs from a specific site. For hyperscale operations, the decisive information is the site’s network design, not the national average.

MITIC presents Distrito Innova as a space bringing together academia—with UPTP as one of its pillars—applied research, industry and government. Its objectives include knowledge, investment, training and job opportunities.

That direction supports a data center strategy, but sufficient public statistics to measure the current supply of AI, high-performance computing and data center operations specialists against possible large-scale demand remain difficult to obtain. Talent availability must be checked, not assumed.

CERT-PY, part of MITIC, coordinates national incident prevention, detection and response capabilities. MITIC also lists availability, security and interoperability among the requirements for its digital infrastructure and public data centers.

However, national capabilities do not replace a facility’s security design: a security operations center, physical controls, segmentation, zero-trust architecture, continuity and compliance must be defined for each operation and customer.

In September 2026, MIC argued that attracting AI infrastructure should benefit the knowledge economy and open opportunities for local developers, entrepreneurs and investors, rather than being limited to energy consumption.

This offers a useful way to measure results: alongside installed MW, track business adoption, research, specialized jobs, transfer of skills, cloud and cybersecurity services, and new businesses around the infrastructure.

① Firm connection capacity at the site, ② interconnection date, ③ electrical redundancy, ④ multiple carriers and physically separate routes, ⑤ measured latency to cloud hubs, ⑥ hiring and training plans, and ⑦ long-term contracts for energy, land and operations.

Public sources indicate favorable developments in energy, transmission, connectivity and talent, but do not demonstrate that these seven conditions are already settled for every project. This gap should be treated as due diligence still to be completed.