Crusoe, Araico Partner on 106 MW AI Data Center Near Itaipú Dam in Paraguay
Crusoe and Paraguayan energy and infrastructure developer Araico announced a strategic partnership on Oct. 22, 2026, to build AI compute infrastructure powered by the Itaipú Hydroelectric Dam in Paraguay. The project is Crusoe's first dedicated AI Cloud deployment in Latin America.
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 in total. The facility will be located adjacent to the Itaipú substation.
Crusoe and Araico Divide Development and Operations Roles
Araico will lead local development and site infrastructure next to the Itaipú substation. Crusoe will manage, operate and deliver the physical compute for Crusoe Cloud. The companies described the approach as pairing local infrastructure development expertise with Crusoe's AI factory and cloud operations track record.
The facility will serve both U.S. cloud customers and growing in-region demand across Latin America through Crusoe Cloud. The deployment extends Crusoe's footprint of energy-aligned AI infrastructure across North America, Europe and now Latin America.
Cully Cavness Cites Energy-First Strategy
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. "Paraguay's unique history and geography have enabled one of the most abundant renewable power sources in the world through the Itaipú Hydroelectric Dam," Cavness said. "Crusoe's energy-first strategy is designed precisely to unlock and add value to this kind of power resource through advanced digital infrastructure."
Alejandro Zuccolillo, CEO of Araico, said the partnership brings world-class AI infrastructure to Paraguay while showcasing the country's renewable energy leadership. "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," Zuccolillo said.
Government Officials Weigh In
Paraguay's President Santiago Peña said the partnership "directly unlocks new value from our natural resources" and brings jobs, investment, technology and innovation to the country. He described it as an opportunity for Paraguay to establish itself as a regional leader in AI infrastructure.
Deputy Secretary of State Christopher Landau, who was leading a U.S. business delegation in Paraguay when the agreement was signed, said the project has the potential to be the largest private foreign investment in Paraguayan history.
Power Supply Drives the Site Selection
The project is designed around power availability rather than conventional data center real estate fundamentals. Itaipú generated 72,879 GWh in 2025, and Paraguay has historically used only part of its entitlement, selling surplus power to Brazil. Locating compute next to the substation could reduce transmission constraints and convert surplus hydroelectric generation into higher-value digital infrastructure.
At the full 280 MW, the campus would consume roughly 2.2 to 2.5 TWh annually at a high utilization rate. A 106 MW IT load implies roughly 0.93 TWh per year at continuous operation before facility overhead. Both figures remain well below Itaipú's annual generation.
A proposed long-term power arrangement would begin at 6 MW and increase toward 280 MW, with an initial electricity price of approximately $48 per megawatt-hour. Those terms were not part of Crusoe's announcement.
Regional Competition and Crusoe's Capital Position
Paraguay is already emerging as a destination for power-intensive computing. HIVE Digital Technologies has developed approximately 300 MW of hydroelectric-powered data center capacity at its Yguazú site, with another 100 MW under development.
Crusoe has more than 6 GW of gross contracted capacity across data centers and cloud operations, including 1 GW operational, following a $3.9 billion Series F financing. The Paraguay project fits within that broader effort to secure geographically diverse, power-linked AI capacity.
Outlook
The initial 106 MW load is large by data center standards, and the 280 MW expansion option would place the campus among the larger announced AI-oriented developments in Latin America. Execution factors include grid access, regulatory approval, transmission reliability, customer contracting and construction financing. The arrangement also raises policy questions about whether Itaipú power should continue to be exported to Brazil or redirected to domestic industrial use.
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