The ANDE Engineers Union (UIA) has proposed capping the consumption of electro-intensive industries in Paraguay at 700 megawatts as a way to preserve the country's energy security and avoid compromising strategic resources in the medium and long term.
Engineer Manuel Mattel, president of the UIA, explained that the proposal emerged following a technical analysis carried out after the revocation of decrees that granted special tariff conditions to large energy consumers.
According to Mattel, the union considers it necessary to establish a roadmap for future investments related to industries with high electricity consumption, including data centers, artificial intelligence projects, and other technological activities that demand large volumes of energy.
The 700 MW cap represents approximately 10% of Paraguay's current available generation capacity. "We are thinking primarily about energy security. What we are seeking is to limit the impact these industries could have on the future need for new generation sources," the engineer stated.
In the engineers' assessment, the country faces a scenario in which the available energy surplus is beginning to shrink progressively due to the growth of domestic demand and the development of new economic activities. They warned that if the current pace of consumption continues, Paraguay will need to accelerate investments in new electricity generation sources in the coming years, at costs higher than those of hydroelectric power from Itaipu and Yacyretá.
The UIA's analysis draws on the recent experience of cryptocurrency mining, an activity that has been operating in Paraguay since 2022 and shares similar characteristics with data centers and artificial intelligence projects due to its high energy demand. According to Mattel, the economic benefits initially projected for this type of industry did not materialize to the expected magnitude, with no significant impact in terms of industrialization, technological development, or mass job creation.
Paraguay relies heavily on the Itaipu and Yacyretá hydroelectric dams for power generation, and its available energy surplus has been a draw for investment in high-consumption sectors such as data centers and artificial intelligence projects across South America. The UIA's proposal could influence the pace of these investments and the country's regional energy strategy.