Paraguay and Taiwan are planning a binational artificial intelligence data center in Chaco’i, based on a model similar to Itaipu and presented by the Paraguayan government as intended to become the world’s largest AI center. The project’s final capacity is planned at up to 1,000 MW, with an estimated initial investment of US$200 million to US$300 million.
Itaipu
Itaipú is a binational hydropower dam shared by Paraguay and Brazil on the Paraná River. For Paraguay it is a key source of electricity, state revenue, and energy-policy negotiations with Brazil.
Paraguay's state electricity utility ANDE has kept two strategic projects stalled for years: the sale of energy from the Acaray plant to Brazil and the issuance of its own bonds, both without an official completion schedule.
The government of Santiago Peña spent over US$ 22 million on advertising through Itaipú, which defends the expenditures, while Petropar plans to bid out promotional items like bags and uniforms, and lawmakers propose redirecting such funds to healthcare.
The cost of the Bioceanic Route bridge connecting Carmelo Peralta in Paraguay to Puerto Murtinho in Brazil has increased by $11.5 million during the project's construction, which is funded by Itaipu Binacional.
The Finance Committee of the Paraguayan Senate halted a project that would redirect communication funds to healthcare and postponed for 15 days the analysis of a budget increase to pay off the sector's debts.
The government of Santiago Peña used funds from Itaipú and Yacyretá to finance an advertising campaign in allied media outlets during the World Cup, according to a complaint by Senator Yolanda Paredes.
The Public Prosecutor's Office has requested the dismissal of the complaint against the Paraguayan director of Itaipú Binacional regarding the purchase of school furniture, having found no evidence of irregularities, although the case continues to generate public debate.
Former Itaipú director Gladys Benegas points out that regulatory failures, such as the overlapping functions of the state utility ANDE and a lack of tariff predictability, are hindering private investment in Paraguay's energy sector.
The Paraguayan government is accelerating plans to diversify its energy matrix with natural gas, solar, and wind projects to prevent the depletion of its electricity surplus by 2030.
The Mercosur Summit kicked off in Luque with a focus on the trade agreement with the European Union and negotiations over the Itaipú energy tariff.
Itaipu opened the spillway gates on Sunday to control the reservoir, which reached 220.30 meters after heavy rains upstream, since increasing power generation was not possible due to low demand from the Brazilian and Paraguayan systems.
The Segundo Foro Internacional de la Ingeniería (FIING) 2026 will be held on July 23 in Asunción, organized by the Centro Paraguayo de Ingenieros to discuss national development challenges. The program will cover topics such as the Bioceanic Route bridge, the Plan Paraguay 2X, renewable energy, and the quality of higher education in engineering.
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.
Paraguay is facing an imminent energy crisis due to a 21% increase in electricity consumption in the first four months of the year, a delay of about two years in ANDE's Master Works Plan, and an investment deficit, which currently stands at $340 million annually compared to the $900 million needed per decade, potentially exhausting the energy surplus from Itaipú and Yacyretá by 2029.
Paraguay has revoked the decrees that encouraged electro-intensive industries and strengthened its National Energy Strategy through 2050 to ensure energy security amid growing industrial demand.
Construction works on the future Chaco General Hospital, which will benefit around 150,000 people in the Western Region, are progressing through the foundation phase, with 70% of earthworks completed and the first 22 piles already installed. The project is being carried out by the Western Health Consortium, which includes a firm linked to Grupo Cartes, under the supervision of the MOPC and the Ministry of Public Health and Social Welfare, with funding from Itaipú Binacional. The consortium's links to Grupo Cartes and related procurement controversies have been reported.
Victorio Oxilia warns that electricity rates below ANDE’s actual cost for energy-intensive industries could jeopardize the finances of the Paraguayan state utility.
Atome PLC has finalized a $665 million investment to build a green fertilizer plant in Villeta, Paraguay, contingent upon the approval of a preferential electricity tariff by ANDE to ensure the project's financial viability.
Data from the National Cadastre Service in 2019 reveal that rural land registered in Paraguay totals 654,861 km²—about 270,000 km² more than the country's officially recognized territorial area of 406,752 km²—reigniting the debate over title overlaps, historical surveying errors, and irregularly acquired lands.
Itaipú transfers to Paraguay fell 12.53% in the first five months of 2026 compared with the same period in 2025, totaling $205,265,900, with the steepest drop in the Energy Cession Compensation, which declined 34.15%, while royalties fell 1.13% and benefits to ANDE rose 1.51%.
The main tourist attractions at Itaipú Binacional will be closed to the public from June 1 to 7 due to the 38th Session of the International Coordinating Council of the Man and the Biosphere Programme (MAB-ICC) of UNESCO, an event that will be hosted at the hydroelectric plant's facilities and will bring together delegations from several countries.
Expert questions Paraguay's sovereignty in the Yguazú Digital project, a mega artificial intelligence center with Taiwan that will use energy from Itaipú, warning that the country will have no control over hardware, algorithms, or significant job generation.
Itaipú Binacional is investing more than G. 20.5 billion in the comprehensive revitalization of Ñu Guasu Park in Luque, with works including the renovation of restrooms, roadways, fencing, parking areas, and playgrounds, as well as the construction of a new User Service Center.
Itaipú Binacional plans to install up to 14,000 MW of floating solar power on its reservoir, a capacity equivalent to that of the current hydroelectric plant. By utilizing 10% of the water surface, the project aims to reduce reliance on hydropower and minimize evaporation. This initiative builds on the success of a pilot plant that already supplies part of the facility's internal consumption and is currently being expanded to include battery storage.