Crusoe announces Paraguay AI data center partnership

U.S. technology company Crusoe announced Thursday a partnership with Paraguayan developer Araico to build artificial intelligence data centers powered by the Itaipu hydroelectric dam. The announcement concerns a planned development in Paraguay.

Crusoe said the project would be its first dedicated AI cloud operation in Latin America. The company expects the initial facilities to begin operating by mid-2027.

The facilities would provide computing power to customers in the United States and Latin America. Araico would develop the site and infrastructure, while Crusoe would install and operate the computing equipment.

Electricity would come from Itaipu, a large hydroelectric plant jointly operated by Paraguay and Brazil on the Paraná River. Paraguay's state-owned utility, ANDE, would supply and sell the electricity to the development.

The partnership's value should not be confused with Araico's $12 billion projection for its broader development. That figure has not been confirmed as the value of the newly announced Crusoe partnership.

Neither the State Department nor Crusoe disclosed the total investment or financing arrangements for the initial data center deployment.