Araico Corporation launches US$ 12 billion AI project in Paraguay

Araico Corporation has officially launched the Iguazú AI City project in Alto Paraná, Paraguay, representing a projected private investment of approximately US$ 12 billion over the next three years. The initiative aims to establish the largest data center in Latin America, transitioning Paraguay from a raw energy exporter to a global provider of advanced computing and artificial intelligence processing.

The project will be implemented in three stages. The first stage, currently under construction, involves an investment of US$ 300 million and is expected to complete its infrastructure by the end of the year, with computing capacity exports potentially beginning by March. Subsequent stages involve two US$ 5.5 billion expansions.

Negotiations with the National Electricity Administration (ANDE) are reportedly in advanced stages. The agreement involves a technical tariff starting at US$ 45 per MWh for 220 kV, with annual adjustments of 2.5% or based on US inflation. The project is supported by Silicon Valley firms, including Founders Fund and Stargate, and is expected to represent nearly 20% of Paraguay's GDP.