Paraguay is set for major economic change. X8Cloud Inc., a Los Angeles-based technology multinational, has announced plans to construct the largest artificial intelligence data centre in the Southern Hemisphere. The AI Data Centre Paraguay project will rank among the world’s most significant technology investments.
X8Cloud intends to invest between US$10 billion and US$50 billion over three decades. This investment exceeds any previous foreign investment Paraguay has attracted. Senior executives Juan Carlos Dueñas (Chief Executive Officer) and William Margo (President of International Business Development) are in Paraguay to oversee final preparations. Construction begins in the second quarter of 2026.
Why AI Data Centre Paraguay became the strategic choice
Three strategic factors determined X8Cloud’s choice. First, Paraguay’s robust diplomatic relationship with the United States provided strong confidence. Second, the nation possesses abundant renewable energy at competitive rates. Third, Paraguay offers an attractive regulatory and tax environment.
Paraguay’s hydroelectric capacity stands as a distinct global advantage. The Itaipú Dam is jointly operated by Paraguay and Brazil. The infrastructure ranks among the world’s largest hydroelectric facilities. This provides reliable, clean power at scale for the AI Data Centre Paraguay project. Few nations can replicate this advantage. “The clean and abundant energy from Itaipú is an asset that no other country can offer at this scale,” Dueñas stated.
Government support
X8Cloud conducted thorough technical assessments with ANDE, Paraguay’s state electricity provider. The company confirmed satisfaction with Paraguay’s capacity to sustain the project. Part of the financing may originate from the United States government. This demonstrates bilateral commitment.
Discussions with the United States Department of Commerce are ongoing. “Paraguay is attracting many American companies thanks to excellent relations with our country,” Dueñas noted, signalling that this project may catalyse additional technology investment.
Long-term contractual certainty
For the AI Data Centre Paraguay to advance, X8Cloud identified specific requirements. The company requires a dedicated tariff structure for artificial intelligence operations. This recognises that such investment generates employment and economic activity. Long-term contractual certainty is equally essential. Contracts must span 30 to 50 years. Investors require this stability.
Transparency in contracting is paramount. “We are on the right path and will reach an agreement beneficial for both countries,” Dueñas asserted, expressing confidence despite acknowledging that such arrangements represent new ground for Ande.
Local talent and economic promise
X8Cloud recognises that local collaboration is vital to success. The company has engaged with Technoma, an established Paraguayan firm. They are developing operational partnerships. “We want to support companies that already exist here to ensure this project succeeds,” Margo stated.
The human dimension matters equally. Dueñas praised Paraguay’s workforce. “The people here are extraordinarily friendly. There are much talent and world-class engineering.” This recognition signals employment opportunities. The AI Data Centre Paraguay project will create skilled jobs and integrate local expertise.
The long-term implications extend beyond infrastructure. Using Itaipú’s energy, Paraguay could export technological services globally. The nation could exchange energy exports for strategic commodities. These include minerals and agricultural products. “This is one of the most valuable things in the world right now,” Dueñas concluded. “Paraguay with its natural resources can start participating in the technology market.” This positions the nation as an exporter of technology rather than merely a consumer.
Read more: Paraguay’s AI Momentum: Youth, Energy, And A Chance To Lead.
