Crusoe, the AI infrastructure company, announced on October 22 a partnership with Paraguayan developer Araico to build an AI compute site next to the Itaipú substation. It is Crusoe Cloud's first dedicated deployment in Latin America and routes part of Paraguay's hydro power toward AI workloads.
What the deal covers
According to the official announcement, Crusoe plans an initial deployment in mid-2027. The project has a path to scale to 106 MW of IT capacity and long-term options to expand to approximately 280 MW in total.
- Location: adjacent to the Itaipú substation
- Power source: 100% hydroelectric, direct from the Itaipú dam
- Customers: US cloud customers and in-region demand across Latin America, via Crusoe Cloud
- Timeline: first phase online in mid-2027
Phase | IT capacity | Timeline |
|---|---|---|
Initial deployment | not disclosed | mid-2027 |
Scale-up | 106 MW | not disclosed |
Long-term options | approx. 280 MW | not disclosed |
Who does what
Araico leads local development and site infrastructure next to the Itaipú substation. Crusoe manages, operates and delivers the physical compute for Crusoe Cloud.
Araico describes itself as the "AI Powerhouse of Latin America" and says it converts Itaipú hydro power into compute. For Crusoe, the project extends its AI infrastructure footprint from North America and Europe into Latin America.
What officials said
Paraguay's President Santiago Peña said the partnership "brings jobs, investment, technology, and innovation to Paraguay" and gives the country a chance to become a regional leader in AI infrastructure.
US Deputy Secretary of State Christopher Landau was leading an American business delegation in Paraguay when the agreement was signed. He said the project "has the potential to be the largest private foreign investment in Paraguayan history".
Cully Cavness, Crusoe co-founder, president and chief strategy officer, tied the project to the company's energy-first strategy: building digital infrastructure where power is abundant, accessible and environmentally aligned.
Why it matters
The announcement describes the Itaipú dam as one of the largest and most reliable 100% renewable hydroelectric power sources in the world. The deal links that capacity directly to an AI cloud operator serving US customers, not only local demand.
Araico CEO Alejandro Zuccolillo said the goal is "capturing maximum value from Paraguay's renewable power right here at home", turning the country's energy abundance into industrial growth and local jobs.
