Paraguay Attracts Data Center Investments with Low Energy Costs and Tax Incentives
DATA AND AI INFRASTRUCTURE
Paraguay is becoming a prime destination for multinational data centers, driven by low energy costs and attractive tax incentives. Notably, X8 Cloud plans to invest $50 million to construct the largest AI data center in the Southern Hemisphere by 2026, leveraging energy from the Itaipú Dam. While interest in technology projects is rising, local entrepreneurs are calling for clearer regulatory frameworks and long-term contract assurances.

Feb 5, 2026, 6:05 AM