Crusoe Targets 106MW Paraguay Data Center on Itaipú Hydro Power

Crusoe plans up to 106MW of IT capacity in Paraguay, its first project in Latin America. The company announced the deal this week with Araico, a Paraguayan energy and infrastructure developer launched out of stealth this month. The site will sit adjacent to the Itaipú substation and serve Crusoe Cloud.

First-phase launch is targeted for mid-2027. Long-term options exist to expand to roughly 280MW total. Crusoe did not disclose capital costs, power purchase terms, or contracted customers. The launch date sits more than two years out. Data center projects of this scale routinely slip.

"Our first expansion into Latin America, this project relies on one of the largest 100 percent renewable hydroelectric power sources in the world, advancing our strategy of building AI where energy is abundant and accessible," Crusoe said in a statement.

What is Araico, and who is backing it?

Araico intends to develop Iguazu AI City, a 1.3GW campus (a measure of total electrical capacity across the site) designed for hyperscalers, AI labs and enterprises. Construction is reportedly already underway. Araico claims the $12 billion project is the largest private investment in Paraguay's history.

That figure is a stated ambition, not audited fact. Investors include Founders Fund, IDB Invest, and the US International Development Finance Corporation. Araico has not published tenant commitments.

"Partnering with Crusoe brings world-class AI infrastructure to Paraguay while showcasing our nation's renewable energy leadership on a global scale," said Araico CEO Alejandro Zuccolillo.

Who said what at the announcement?

Crusoe co-founder, president and COO Cully Cavness framed the deal as the fulfillment of the company's founding logic. "Crusoe was founded on a simple idea: build digital infrastructure where power is abundant, accessible and environmentally aligned," Cavness said. He cited Itaipú as one of the most abundant renewable power sources in the world and pledged the project would deliver value "for the people of Paraguay, for our local partners and for Crusoe."

President Santiago Peña endorsed the partnership directly. "This partnership between Crusoe and Araico directly unlocks new value from our natural resources," Peña said. He called it "an opportunity for Paraguay to establish itself as a regional leader in AI infrastructure." No tax or regulatory terms accompanied the statements.

How does Paraguay's existing market compare?

Paraguay's data center market remains small. Current operators include:

• Cryptominer Hive, in Yguazú, plus Buzz cloud services around Asunción
• Keel (formerly Bitfarms), which sold its Paso Pe cryptomine site to Sympatheia Power Fund, a crypto infrastructure fund managed by Hawksburn Capital, at the turn of the year
• Tigo, IPXON and Penguin, each with facilities in the country

A 106MW site would dwarf this installed base. One comparison: Crusoe's Texas campus, built alongside Oracle for OpenAI's Stargate project, marks the company's largest known development. Paraguay would become its first Latin American cloud location.

What is Crusoe's track record?

Founded in 2018, Crusoe originally ran cryptomining facilities along oil and gas pipelines, using stranded natural gas to mine Bitcoin. It launched a GPU cloud service from colocation facilities in 2023, then sold the crypto business to NYDIG. Its cloud runs from leased facilities. It also develops permanent data centers for third parties.

Crusoe Cloud partners include atNorth in Iceland, Polar DC in Norway, and Digital Realty and Equinix in Virginia. The company operates seven cloud regions: two in Iceland, one in Norway, and US regions in Houston, Texas; Ohio; Virginia; and Sparks, Nevada.

Mid-2027 remains the number to watch. Everything else, including the 280MW expansion path, is an option, not a contract.