Araico Corporation AI infrastructure project in Paraguay

Araico Corporation has officially launched the Iguazú AI City project in Alto Paraná, Paraguay, a projected US$ 12 billion private investment intended to establish Latin America’s largest data center. The initiative aims to transition 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, including two US$ 5.5 billion expansions. The first stage, involving US$ 300 million, is expected to complete infrastructure by the end of 2026, with potential computing exports starting by March 2027. Negotiations with the National Electricity Administration (ANDE) are reportedly in advanced stages, with a proposed technical tariff starting at US$ 45 per MWh for 220 kV. The project is supported by Silicon Valley firms, including Founders Fund and Stargate, and is expected to represent nearly 20% of Paraguay's GDP. Following the launch, the United States and Paraguay announced a strategic partnership between the American company Crusoe and the Paraguayan developer Araico to construct high-performance computing infrastructure. This facility will utilize electricity from the Itaipu hydroelectric dam to provide cloud computing services for clients in North America and Latin America. The first phase is expected to begin operations by mid-2027, with an initial capacity of 106 megawatts and potential long-term expansion up to approximately 280 megawatts. Expanding its international cooperation, Paraguay has become the 26th signatory to the Pax Silica Declaration, a United States-led initiative aimed at coordinating the production of strategic components and securing artificial intelligence infrastructure. Signed at the U.S. State Department by Paraguayan Foreign Minister Rubén Ramírez Lezcano and U.S. Under Secretary of State for Economic Affairs Jacob Helberg, the pact aims to link energy resources, critical minerals, and semiconductor supplies to build “super intelligence infrastructure in the Americas.”