An AI data center fed by the Itaipú dam is the headline result of US Deputy Secretary of State Christopher Landau's visit to Paraguay from 19 to 21 October 2026. On 22 October the US company Crusoe and the Paraguayan developer Araico announced a partnership to build AI cloud capacity next to the Itaipú substation. The same week, the state utility ANDE signed a 15-year power contract for the site, and Landau signed two security instruments with Foreign Minister Rubén Ramírez Lezcano, one of them covering a US border-screening system called PISCES.
Photo: “Itaipu Aerea” by International Hydropower Association (IHA), Wikimedia Commons, CC BY 2.0, cropped to 16:9 and scaled to 1600x900 (WebP)
Neither Crusoe nor the US government published an investment figure. Landau said the project "has the potential to be the largest private foreign investment in Paraguayan history", as quoted in Crusoe's own release.
What Crusoe and Araico Plan at Itaipú
Crusoe describes the site as its first dedicated AI cloud deployment in Latin America. The facility sits adjacent to the Itaipú substation and is meant to serve US cloud customers as well as demand inside the region. The split of roles is clear in the release: Araico leads local development and site infrastructure, while Crusoe manages, operates and delivers the computing hardware for its Crusoe Cloud service.
The timeline is staged. Crusoe plans an initial deployment online in mid-2027, with a path to 106 MW of IT capacity and long-term options for about 280 MW in total. President Santiago Peña said in the release that the partnership "directly unlocks new value from our natural resources."
The larger dollar figures come from the Paraguayan side. Araico's own campus plan, branded Iguazú AI City, is reported at about US$12 billion, and Araico director Alejandro Zuccolillo has put roughly US$5.5 billion on each of the two later stages. None of those figures appears in Crusoe's announcement.
The ANDE Power Contract Behind the AI Data Center
The electricity price was the open question, and it is now public. ANDE president Miguel Báez Reyes confirmed a 15-year supply contract with Kuntur SA, a company linked to the project, signed on Thursday 22 October according to his account. Under the Itaipú treaty only ANDE and Brazil's ENBPar may contract the dam's energy, so the power runs from Itaipú to ANDE and on to the campus through the Yguazú substation in Alto Paraná.
The contract sets three supply stages and two price levels:
| Stage | From | Contracted power | Price |
|---|---|---|---|
| Pilot, 23 kV | 1 December 2026 | 6 MW | US$56.39 per MWh |
| Second stage, 220 kV | April 2028 | 146 MW | US$48.91 per MWh |
| Third stage, 220 kV | April 2029 | 286 MW (ceiling) | US$48.91 per MWh |
Prices rise each year with US inflation, by at least 2.5%, and generation costs are reviewed periodically. The rate falls under ANDE's Resolución P/N.º 52552/2026 for energy-intensive technology industry, and the company pays for the connection works.
Speaking to radio Monumental 1080 AM, as quoted by Última Hora, Zuccolillo called it "the most lucrative contract in the history of ANDE", comparing it with about US$35 per MWh charged to Paraguayan industry and US$44 to cryptocurrency miners. He also said the project would use less than 5% of the energy Paraguay cedes to Brazil. The ANDE workers' union Sitrande had asked for transparency on the terms before the figures came out.
PISCES and Two Security Instruments Signed in Asunción
The security track began on Monday 19 October, when Landau and Ramírez Lezcano signed two instruments at the foreign ministry.
The first is a memorandum of intent on border security. It covers the implementation in Paraguay of PISCES, the Personal Identification Secure Comparison and Evaluation System, a US-supplied tool for border management and passenger control. Paraguayan reporting describes it as a platform to assess and identify passengers in real time at the main points of entry, with training for staff of Migraciones and other agencies at border crossings and airports. No installation date and no cost have been published.
The second is an air-interception assistance agreement aimed at suspected drug flights. According to Revista PLUS, it takes effect only after a later exchange of diplomatic notes.
The State Department added funding and staff. It will open a section of its Bureau of International Narcotics and Law Enforcement Affairs (INL) in Asunción, serving as a regional hub for the Southern Cone, and send a counterterrorism advisor to the capital. Diario HOY reports US$5.5 million for countering terrorist financing, border security and digital evidence, and US$6.25 million against transnational organized crime.
Uranium and the Nuclear Track After the August Memorandum
Uranium Energy Corp announced a US$12 million investment to develop one of its uranium concessions in Paraguay. Both governments also said they would begin negotiating an agreement under the US Atomic Energy Act on peaceful uses of nuclear energy, the "Section 123" agreement that our report on the civil nuclear memorandum of August described as the missing legal step. Talks are starting, and nothing has been signed.
How Brazil Is Reading the Itaipú Data Center Deal
Itaipú belongs to Paraguay and Brazil in equal parts, and the US announcement did not mention Brazil. On 25 October, Brasil 247, as carried by the Indian agency ANI, quoted a source at Brazil's presidential palace saying the government is waiting for its embassy in Asunción to assess the agreements before taking an official position. Brasília has not commented publicly on the terms.
What the Deals Mean for People Moving to Paraguay
For anyone planning a move, nothing in this package changes the residency rules. Migraciones applies Ley 6984/2022 as before, and the PISCES memorandum is a statement of intent with no start date. When the system arrives, expect identity checks at the main entry points to lean more heavily on data. That fits a direction Migraciones itself signaled on 23 October, when it discussed advance airline passenger data with the police, as covered in our report on the police certificate for foreigners. Travel on the same passport you use for your residency file, and keep its details identical everywhere.
For Alto Paraná, a project of this size means construction and technical jobs around Yguazú, a district of Alto Paraná west of Ciudad del Este. Whether housing demand in the area follows depends on how quickly the stages are built, and the first power arrives only in December. Our Ciudad del Este guide describes the region as it is today. The project also reads as a successor to the X8 Cloud plan announced in July, with one difference: this time a priced power contract exists.
Frequently Asked Questions About the Itaipú AI Data Center
Who is building the AI data center at Itaipú in Paraguay?
The US company Crusoe and the Paraguayan developer Araico. Araico leads local development and site infrastructure, and Crusoe operates the computing for its Crusoe Cloud service. The power contract with ANDE was signed with Kuntur SA, a company linked to the project.
How much will the Itaipú AI data center pay for electricity?
US$56.39 per MWh during the 23 kV pilot phase and US$48.91 per MWh once it connects at 220 kV, rising each year with US inflation by at least 2.5%. The 15-year contract with ANDE starts at 6 MW on 1 December 2026 and reaches 286 MW from April 2029.
What is PISCES at Paraguay's border?
PISCES, the Personal Identification Secure Comparison and Evaluation System, is a US-supplied border-management and passenger-screening system. Paraguay signed a memorandum of intent on 19 October 2026 to implement it at its main points of entry, with training for Migraciones staff. No start date has been published.
Do the US-Paraguay agreements change residency requirements in Paraguay?
No. The agreements cover investment, energy and security cooperation. Residency is still governed by Ley 6984/2022 and handled by Migraciones, and none of the instruments signed in October 2026 changes its requirements.
Moving to Paraguay while Alto Paraná builds out? We handle residency and the cédula in person with you, from Migraciones to the police and Interpol appointments. See how the residency service works.
As of 26 October 2026: this report is based on the company release and Paraguayan press reporting, not on the signed contract or the text of the memorandum. It is not legal or investment advice, and figures may change once official documents are published.
Sources
- ▹Crusoe: Crusoe Partners with Araico to Deploy AI Cloud Infrastructure in Paraguay (22 October 2026)
- ▹RDN: Araico y Crusoe usarán energía de Itaipú para centro de IA (24 October 2026)
- ▹Última Hora: Araico confirma acuerdo histórico con la ANDE (23 October 2026)
- ▹Revista PLUS: Más presencia estadounidense en Paraguay (22 October 2026)
- ▹Diario HOY: Los nuevos acuerdos entre EE.UU. y Paraguay (22 October 2026)
- ▹1000 Noticias: EE. UU. aportará a Paraguay un moderno sistema de control migratorio y fronterizo (19 October 2026)
About the author
Yannick Schroth
Founder · Paraguay relocation support
Spends regular time in Paraguay and, with his team on the ground in Asunción, guides international nomads, entrepreneurs and investors through residency, the cédula and the RUC paperwork.
