Paraguay wants to turn its long-standing electricity surplus into an asset for the digital economy. Industry and Commerce Minister Marco Riquelme argued that the country should get ready to attract investment in data centers geared toward artificial intelligence, tapping into the growing global demand for technology infrastructure.
“AI is the movement of the world’s economic future. If we want to join this wave of growth, we have to prepare the country to receive this type of investment,” Riquelme said in an interview with radio 1020 AM.
The strategy rests on two competitive advantages: abundant hydroelectric generation, especially from the binational Itaipu dam, and available connectivity. Currently, much of the energy Paraguay does not consume is ceded to Brazil. The government’s proposal is to add value to this surplus by using it to power servers that train AI models and store large volumes of data.
“Instead of ceding the energy to Brazil, we will process it and sell it transformed into data processing for artificial intelligence,” the minister explained. He added that the relationship with Taiwan should open doors for a company from the sector to set up in the country.
The global race for data centers, fueled by the rapid advance of AI, demands massive amounts of electricity. Paraguay sees this demand as an opportunity to diversify its economy, create specialized jobs, and position itself as a digital services hub in the region.