Energy & Sustainability

Hydroelectric power to support new Paraguay AI facility

Hydroelectric power to support new Paraguay AI facility

Crusoe, a company that builds AI-optimised data centres harnessing large-scale energy sources, 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.

The dam is sited on the Paraná River on the border between Brazil and Paraguay.

Crusoe plans to bring an initial deployment 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 total.

Located adjacent to the Itaipú substation, the facility will tap directly into one of the largest and most reliable 100% renewable hydroelectric power sources in the world and will serve both US cloud customers and growing in-region demand across Latin America through Crusoe’s full AI stack called Crusoe Cloud.

The initiative marks Crusoe’s first dedicated AI cloud deployment in Latin America. This project advances the company’s approach of locating AI compute directly at abundant energy sources worldwide.

Cully Cavness, Co-founder, President, and Chief Strategy Officer of Crusoe, explains: “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.”

Araico will lead local development and site infrastructure adjacent to the Itaipú substation, while Crusoe will manage, operate, and deliver the physical compute for Crusoe Cloud.

Crusoe says that this deployment in Paraguay strengthens its growing global footprint of energy-aligned AI infrastructure, extending its reach across North America, Europe, and now Latin America while deepening digital infrastructure ties throughout the Western Hemisphere.



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