Crusoe Partners with Araico to Build 106MW AI Data Center in Paraguay

Crusoe, the US data center and cloud company, is expanding into Latin America for the first time through a partnership with Paraguayan energy and infrastructure developer Araico to build AI compute infrastructure powered by the Itaipú Hydroelectric Dam. The project marks a significant step in Crusoe's strategy of siting digital infrastructure where renewable energy is abundant and accessible, and positions Paraguay as an emerging player in the regional AI infrastructure landscape.

The site, located adjacent to the Itaipú substation, will serve Crusoe Cloud, the company's GPU cloud platform. Crusoe aims to launch the first phase in mid-2027, with a path to scale to 106MW of IT capacity and long-term options to expand to approximately 280MW in total. The company described the venture as relying on one of the largest fully renewable hydroelectric power sources in the world, advancing its energy-first approach to building AI infrastructure.

"Crusoe was founded on a simple idea: build digital infrastructure where power is abundant, accessible and environmentally aligned," said Cully Cavness, co-founder, president, and COO of Crusoe. "Paraguay's unique history and geography have enabled one of the most abundant renewable power sources in the world through the Itaipú Hydroelectric Dam. Crusoe's energy-first strategy is designed precisely to unlock and add value to this kind of power resource through advanced digital infrastructure."

Araico, which launched out of stealth this month, is developing Iguazu AI City, a 1.3GW campus designed to serve hyperscalers, AI labs, and enterprises, with construction reportedly already underway. The company's partners and investors include Founders Fund, IDB Invest, and the US International Development Finance Corporation. Araico says the $12 billion project will be the largest private investment in Paraguay's history. "Partnering with Crusoe brings world-class AI infrastructure to Paraguay while showcasing our nation's renewable energy leadership on a global scale," said Alejandro Zuccolillo, CEO of Araico. "By pairing Itaipú's massive hydroelectric capacity with Crusoe's ability to build and manage AI infrastructure, we are capturing maximum value from Paraguay's renewable power right here at home."

Paraguay's data center market remains comparatively small, with cryptominer Hive operating in Yguazú and around Asunción, and other facilities run by Tigo, IPXON, and Penguin. The entry of Crusoe and Araico signals a potential shift toward larger-scale AI infrastructure development in the country. Paraguayan President Santiago Peña said the partnership "directly unlocks new value from our natural resources" and "gives us a scalable model to create meaningful, lasting change for the Paraguayan people."

Founded in 2018, Crusoe originally built cryptomining facilities along oil and gas pipelines before launching a GPU cloud service in 2023 and subsequently pivoting away from crypto. Its cloud business operates from leased facilities, and the company also develops permanent data centers for other companies, including a large campus in Texas alongside Oracle for OpenAI's Stargate project. Crusoe Cloud currently operates seven cloud regions, including two in Iceland and one in Norway, as well as locations in Houston, Ohio, Virginia, and Sparks, Nevada. The Paraguay project represents the company's first expansion beyond those markets and into Latin America.