Paraguay Launches 15-Year Special Power Tariff to Attract Hyperscale Data Centers

Paraguay Unveils Special Electricity Tariff to Fuel Data Center Boom

January 23, 2026

In a strategic move to position itself as a competitive hub for digital infrastructure in Latin America, the Paraguayan government has enacted a decree establishing a preferential electricity tariff for large-scale data center operators. The policy is designed to leverage the country's abundant renewable energy resources to attract major investments in high-performance computing, artificial intelligence, and cloud services, sectors seen as critical to future economic growth.

The initiative, formalized through Decree 5306, creates a new consumption category labeled "convergent industries." Companies qualifying under this group will benefit from specially negotiated power rates for a period of 15 years. A newly formed bi-ministerial commission, comprising the Ministry of Industry and Commerce (MIC) and the Ministry of Information and Communication Technologies (Mitic), will be responsible for accrediting eligible enterprises. The decree explicitly excludes cryptocurrency mining operations from accessing these tariff benefits.

Paraguay's push into the data center market is underpinned by its capacity to generate clean, low-cost hydroelectric power. The government views this as a foundational advantage in attracting capital-intensive hyperscale projects. Industry analyses suggest that digitalization and related technologies could drive a significant portion of global GDP growth in the coming decades, a potential Paraguay is keen to capture. The policy has already spurred activity, with at least two major data center projects currently under development in the country and several others in advanced negotiations with authorities.

For the global data center industry, Paraguay's offer presents an alternative destination with a stable, long-term energy cost structure. The move signals a growing trend where nations with surplus renewable energy are actively crafting policies to convert that resource into strategic digital infrastructure investments. The success of this tariff regime could influence similar policy developments across the region, reshaping the map of where major cloud and AI compute capacity is built.

Source: bnamericas