Crusoe Partners with Araico to Deploy AI Cloud Infrastructure in Paraguay Powered by Itaipú Hydroelectric Dam

Crusoe, the AI factory company, has announced a strategic partnership with Paraguayan energy and infrastructure developer Araico to build high-performance AI compute infrastructure powered by the Itaipú Hydroelectric Dam. The initiative marks Crusoe's first dedicated AI Cloud deployment in Latin America and advances the company's energy-first strategy of locating AI compute directly at abundant energy sources worldwide. The project underscores a growing industry trend of siting power-intensive AI workloads adjacent to large-scale renewable energy generation rather than relying on traditional grid-connected data centers.

Under the partnership, Crusoe plans to bring an initial deployment online in mid-2027, with a path to scale to 106 MW of IT capacity and long-term options to expand to approximately 280 MW total. Located adjacent to the Itaipú substation, the facility will tap directly into one of the largest and most reliable 100% renewable hydroelectric power sources in the world, serving both U.S. cloud customers and growing in-region demand across Latin America through Crusoe Cloud. Araico will lead local development and site infrastructure, while Crusoe will manage, operate, and deliver the physical compute for Crusoe Cloud.

Paraguay's President Santiago Peña said the partnership directly unlocks new value from the country's natural resources, bringing jobs, investment, technology, and innovation to Paraguay while providing a scalable model to create meaningful, lasting change for the Paraguayan people. Deputy Secretary of State Christopher Landau, who was leading a U.S. business delegation in Paraguay when the agreement was signed, noted that the project has the potential to be the largest private foreign investment in Paraguayan history and reinforces the strong and longstanding bonds between the two countries.

Cully Cavness, Co-founder, President, and Chief Strategy Officer of Crusoe, said the company was founded on the idea of building digital infrastructure where power is abundant, accessible, and environmentally aligned, adding that Paraguay's unique history and geography have enabled one of the most abundant renewable power sources in the world through the Itaipú Hydroelectric Dam. Alejandro Zuccolillo, CEO of Araico, said the partnership brings world-class AI infrastructure to Paraguay while showcasing the nation's renewable energy leadership on a global scale, transforming energy abundance into high-tech industrial growth, local jobs, and digital innovation.

The Paraguay deployment strengthens Crusoe's growing global footprint of energy-aligned AI infrastructure, extending its reach across North America, Europe, and now Latin America while deepening digital infrastructure ties throughout the Western Hemisphere. For Latin America, the project signals the region's emergence as a credible destination for large-scale AI compute investment, leveraging its hydroelectric resources to compete for workloads traditionally concentrated in North American and European markets.