An agreement to supply electricity to Atome's fertilizer plant in Villeta at a preferential rate of $30 per MWh could result in a $750 million loss for Paraguay and ANDE over 15 years.
Itaipú
Itaipú is a binational hydropower dam shared by Paraguay and Brazil on the Paraná River. For Paraguay it is a key source of electricity, state revenue, and energy-policy negotiations with Brazil.
The ANDE Engineers Union proposed limiting the consumption of electro-intensive industries in Paraguay, such as data centers and artificial intelligence projects, to 700 MW in order to preserve the country's energy security and avoid compromising strategic resources in the medium and long term.
Electricity consumption in Paraguay rose 21% in the first four months of 2026, driven by crypto mining and AI data centers. ANDE needs US$600 million per year but invests only half that. Engineers warn demand already exceeds 2027 forecasts and that, without accelerating projects, regions could face power shortages starting in 2029.
The announcement of billion-dollar investments in artificial intelligence data centers in Paraguay, in partnership with Taiwan, represents a historic opportunity, but the country urgently needs to resolve power grid bottlenecks and plan its long-term energy matrix, warns Dr. Victorio Oxilia Dávalos, an energy expert.
The country sees macroeconomic deterioration, with a structural deficit above 2% of GDP and exhaustion of growth engines: labor force and hydroelectric power. Experts point to the need for deep reforms and credible commitments.
Paraguay's National Electricity Administration (ANDE) is considering postponing the update of residential and commercial tariffs until negotiations with Brazil on the new Annex C of the Itaipu Treaty are concluded, expected by mid-year. The state-owned company's president, engineer Félix Sosa, stated that the final tariff will directly depend on this binational agreement, which will define the price of energy generated by the hydroelectric plant.