A massive data center project spearheaded by Araico Corporation calls for a record investment of US$12 billion in Alto Paraná, transforming Itaipú’s clean energy into computing power for global AI.
Asunción, October 2, 2026 — Paraguay is taking a revolutionary leap toward the global technology economy. In the Yguazú district of the Alto Paraná department, development has begun on Iguazú AI City, a hyperscale technology infrastructure campus designed for the training and deployment of artificial intelligence.
Project Highlights
• Historic Investment: Driven by the Latin American platform Araico Corporation—led by Paraguayan entrepreneurs Alejandro Zuccolillo and Nicolás Arréllaga—the project is projected to mobilize US$12 billion in several phases over three and a half years.
• From Energy to “Intelligence”: The initiative will harness surplus hydroelectric power from the Itaipú Dam, connected via the 500-kV transmission line, to shift from exporting raw energy to transforming it locally into processing capacity (“tokens”).
• Timeline and Phases: The first phase involves an investment of US$300 million and aims to have its first operational module (6 MW, equivalent to about 2,000 AI processors) ready by December 2026. The subsequent phases each involve an investment of US$5.5 billion.
• Strong international backing: The project is backed by private capital from Paraguay and the United States, including participation from Founders Fund (a renowned early-stage investor in giants such as Facebook, SpaceX, and Nubank), as well as financing from IDB Invest and the DFC.
• Industrial and social impact: At the peak of construction, the project is expected to create approximately 3,000 to 5,000 jobs, boosting local value chains in metalworking, fiber optics, and services, while retaining domestic engineering talent through joint training programs.
