Paraguay’s abundant renewable hydroelectric surplus from Itaipu (14,000 MW) and Yacyretá is positioning the country as the next frontier for AI and data centers. With nearly 100% clean energy and low costs, major investments are flowing: X8 Cloud plans a US$10-50 billion AI complex, Hive Digital is expanding to 400 MW, and Penguin Group has built hydro-powered facilities. Officials met OpenAI, Nvidia, and others in Silicon Valley in March 2026. Advantages include investment-grade ratings, a simple “Triple 10” tax regime, and low latency to São Paulo. Experts argue domestic use for data centers creates more value and infrastructure than ceding surplus cheaply to Brazil. Annex C revision is ongoing. Paraguay’s GDP growth and IDB digital infrastructure funding support the boom.