 signed a [strategic partnership](https://markets.businessinsider.com/news/stocks/crusoe-partners-with-araico-to-deploy-ai-cloud-infrastructure-in-pa...](https://cdn.baxtel.com/data-center/crusoe-signs-106mw-paraguay-ai-cloud-partnership-with-araico/logo/large_crusoe-signs-106mw-paraguay-ai-cloud-partnership-with-araico-featured.jpg){kind=logo}
Crusoe signed a strategic partnership with Araico, a Paraguayan energy and infrastructure developer, to build AI compute infrastructure powered by the Itaipú Hydroelectric Dam. The first dep
Editorial image illustrating the data center development and energy infrastructure in Paraguay.loyment is planned for mid-2027, with a path to 106 MW of IT capacity.
Under the partnership, Araico leads local development and builds the site infrastructure adjacent to the Itaipú substation. Crusoe manages, operates, and delivers the physical compute for Crusoe Cloud. The facility is designed to serve U.S. cloud customers and growing demand across Paraguay and Latin America. It is Crusoe's first dedicated AI Cloud deployment in Latin America.
The 106 MW figure is a scaling target, not opening-day capacity. The partners have not disclosed the size of the initial deployment or a timetable for reaching 106 MW. Long-term options could expand the site to approximately 280 MW total.
Araico has separately proposed a $12 billion AI campus in Yguazú called Iguazú AI City. UPI reported the $12 billion figure is Araico's projection for its broader development and has not been confirmed as the value of the Crusoe partnership. Araico co-founder Alejandro Zuccolillo told ABC Color in September that the development would begin with 6 MW and expand in stages to approximately 280 MW. Zuccolillo said Araico proposed paying state utility ANDE $45 per MWh with annual price adjustments. BNamericas reported ANDE will supply the first phase and Araico has signed a power purchase agreement with ANDE. BNamericas also reported capacity was expected to be offered through Crusoe Cloud starting in the first quarter of 2027, while the companies' announcement says the initial deployment is planned for mid-2027.
"Crusoe was founded on a simple idea: build digital infrastructure where power is abundant, accessible and environmentally-aligned," said Cully Cavness, co-founder, president, and chief strategy officer of Crusoe. "Paraguay's unique history and geography have enabled one of the most abundant renewable power sources in the world through the Itaipú Hydroelectric Dam."
"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, CEO of Araico.
Paraguay's President Santiago Peña said the partnership would bring jobs, investment, technology, and innovation to the country. U.S. Deputy Secretary of State Christopher Landau, who was leading a U.S. business delegation in Paraguay when the agreement was signed, said the project has the potential to be the largest private foreign investment in Paraguayan history. Neither company disclosed the investment amount for the Crusoe partnership.
Baxtel tracks 11 data center facilities in Paraguay, led by HIVE Digital Technologies with three sites. The largest is HIVE's Yguazù site at 200 MW.
The initial Crusoe deployment is planned for mid-2027. Araico's separate first phase, which local media reported at 6 MW, is scheduled for energization in December 2026 under its contract with ANDE.
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