Crusoe plans 106MW Paraguay data center in first Latin America move

Crusoe announced a partnership with Paraguayan energy and infrastructure developer Araico to build AI compute infrastructure in Paraguay, its first foray into Latin America, powered by the Itaipú hydroelectric dam.

The planned site is adjacent to the Itaipú substation. Crusoe aims to launch a first phase in mid-2027, with a path to 106MW of IT capacity and long-term options to expand to approximately 280MW, Data Center Dynamics reported. The campus will serve Crusoe Cloud.

For allocators, the underwriting gaps matter more than the headline capacity. The coverage does not say who owns the site, who holds the interconnection at Itaipú, what Crusoe pays for power or what the 106MW costs to build. Because the campus serves Crusoe Cloud, the revenue case rests on Crusoe's own cloud demand rather than a signed hyperscaler lease; the only customer the reporting names is the company building the site.

Araico, whose partners and investors include Founders Fund, IDB Invest and the US International Development Finance Corporation, launched out of stealth this month with plans for Iguazu AI City, a 1.3GW campus designed to serve hyperscalers, AI labs and enterprises. Construction is reportedly already underway, Data Center Dynamics reported. Araico says the $12 billion Iguazu AI City will be the largest private investment in Paraguay's history.

Paraguay's data center market is comparatively small, though cryptominer Hive has a presence in the country, Data Center Dynamics reported. Crusoe's planned 106MW is a fraction of the 1.3GW campus its partner intends to develop in the same country, and the first phase is targeted for mid-2027 — the point at which the project would become measurable capacity rather than a pipeline figure.