Paraguay has introduced special electricity rates for artificial intelligence and cloud computing companies. The government announced Decree 5306 in January 2026 regarding preferential AI electricity rates to attract major technology operators to establish operations within the country.
The policy targets hyperscale operators involved in high-performance computing, AI infrastructure, and cloud services. Cryptocurrency mining and blockchain validation are excluded from these preferential rates.
What are convergent industries?
Convergent industries are high-technology ecosystems that integrate renewable energy intensively. These industries operate under certified quality standards and continuous production regimes. These sectors include artificial intelligence, cloud computing, and energy transition technologies.
Government projections suggest these sectors could capture between 18% and 34% of global GDP growth by 2040. This growth potential justifies the 15-year stable tariff guarantee. Officials argue that providing stable electricity costs is essential for attracting large-scale investments in technology infrastructure and research and development.
Paraguay AI electricity rates: how they work
The electrical tariffs apply at four voltage levels. These are extra high tension (500 kilovolts), very high tension (220 kilovolts), high tension (66 kilovolts), and medium tension (23 kilovolts). Companies must maintain a monthly load factor of at least 80% to qualify. The rates are denominated in United States dollars and will remain stable for up to 15 years.
Annual adjustments to Paraguay AI electricity rates will reflect the United States inflation indices. The government will use a formula combining 50% weight to the Producer Price Index and 50% weight to the Consumer Price Index. A new biministerial commission will accredit qualifying companies. The commission includes the Ministry of Industry and Commerce and the Ministry of Information and Communication Technologies.
Interested companies must submit a Productive Linkage Plan. This plan details how they will incorporate local goods, services, and labour. The initiative should outline partnerships with national enterprises and the transfer of technical expertise to Paraguay’s workforce.
Building local expertise
Attracting these industries will create immediate demand for specialised talent. This will elevate standards in cybersecurity, data management, and engineering across Paraguay’s educational system.
Officials argue this strengthens national technological sovereignty. It reduces dependence on external critical supplies. The initiative aligns with Paraguay 2050, the nation’s long-term development strategy. The government expects these companies to establish partnerships with local enterprises and transfer technical knowledge to Paraguay’s workforce.
Implementation timeline
The Paraguayan government has allocated 30 days from the decree’s announcement for administrative implementation. The National Electricity Administration (ANDE) is responsible for operationalising the new tariff structure. This policy leverages Paraguay’s hydroelectric capacity as a comparative advantage in attracting global technology investment.
