Taiwan expects cooperation with Paraguay on artificial intelligence (AI), including a binational data-processing center, to become an international model. The information was released by Paraguay’s state news agency IP after a meeting in Taipei between Ming-Chi Chen, Taiwan’s vice minister of foreign affairs, and Miguel Ángel Aranda Daroczi, Paraguay’s vice minister of administration and technical affairs.
The main project is the Paraguay–Taiwan Binational Artificial Intelligence Data Center, planned for Chaco’i, in the department of Presidente Hayes. A memorandum of understanding (MOU) signed in May between Paraguay and Taiwan provides for a binational model similar to Itaipu and a final capacity of 1,000 megawatts (MW). The Paraguayan government presented the project as intended to become the world’s largest AI center.
Javier Giménez, head of the Civil Cabinet of the Presidency, later described three investment stages and the planned use of Itaipu power: 10 MW, 100 MW and 1,000 MW. Government estimates indicate an investment of US$200 million to US$300 million in the first, 10-MW stage. Giménez said that a 100-MW facility could cost about US$3 billion and a 1,000-MW facility US$30 billion. The figures are projections and do not represent a full investment that has already been contracted.
The plan aims to combine Taiwan’s computing capacity with Paraguay’s energy availability. Industry and Commerce Minister Marco Riquelme said the intention is to turn electricity into data-processing services and knowledge exports, while also encouraging fintech companies, startups and digital solutions for businesses and public agencies. He said the resulting revenue would allow reinvestment in infrastructure and domestic power generation.
The bilateral agenda also includes the Asunción Digital District, in the area of the Olympic Committee, and the Taiwan–Paraguay Smart Technology Park, in Alto Paraná. The Taiwan-led Taiwan Industrial Park Revitalization Project envisages an investment of more than US$6 million to transform the area into a smart-technology hub, attract investment, create jobs and address energy problems by matching labor demand with the available workforce.
At the meeting in Taipei, Aranda praised Taiwanese President William Lai’s vision for revitalizing the park and jointly developing an AI computing center.
The agreement carries diplomatic weight because Paraguay is Taiwan’s only official ally in South America and one of the 12 countries that maintain diplomatic relations with Taipei. China considers Taiwan a “rebellious province” and does not recognize its independence; Taiwan is also not a member of the United Nations.
The data center’s timetable and business model depend on decisions about energy, hardware, algorithms and service commercialization. Luis Benítez Aguilar, secretary of the Paraguayan Society of Artificial Intelligence, identified these four areas as central questions for assessing the project’s execution and announced scale.