Crusoe, an artificial intelligence infrastructure and cloud platform builder and operator, has announced a strategic partnership with Paraguayan energy and infrastructure developer Araico to build high-performance AI compute infrastructure powered by the Itaipú Hydroelectric Dam.
An initial deployment will come 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, according to a press release. The facility will be located adjacent to the Itaipú substation, allowing it to draw from one of the largest renewable hydroelectric power sources in the world. The facility will serve both US and Latin American customers through Crusoe Cloud.
“Paraguay’s unique history and geography have enabled one of the most abundant renewable power sources in the world through the Itaipú Hydroelectric Dam. Crusoe’s energy-first strategy is designed precisely to unlock and add value to this kind of power resource through advanced digital infrastructure. On behalf of the whole Crusoe team, we look forward to making this project a success for the people of Paraguay, for our local partners and for Crusoe,” said Cully Cavness, Crusoe Chief Strategy Officer, President, and co-founder.
“Partnering with Crusoe brings world-class AI infrastructure to Paraguay while showcasing our nation’s renewable energy leadership on a global scale,” said Alejandro Zuccolillo, Araico Chief Executive Officer. “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, and transforming our energy abundance into high-tech industrial growth, local jobs, and digital innovation.”
In its Global Data Center Trends 2026 report, CBRE highlighted that Paraguay’s abundant hydroelectric power and agreeable regulatory environment were drawing investors to the South American country.
This will be Crusoe’s first AI cloud deployment in Latin America.
“This partnership between Crusoe and Araico directly unlocks new value from our natural resources. It brings jobs, investment, technology, and innovation to Paraguay, and gives us a scalable model to create meaningful, lasting change for the Paraguayan people. This is an opportunity for Paraguay to establish itself as a regional leader in AI infrastructure,” said Santiago Peña, President of Paraguay.
Data center construction is set for a surge in spending in the next few years. According to Mordor Intelligence, the South America data center construction market is set to grow in value from US$ 5.72 billion in 2026 to US$ 8.88 billion by 2031.