Is Paraguay ready to use its energy to develop AI? Penguin's Cecilia Llamosas weighs in

Asunción, Paraguay — June 4, 2025. In a column for Última Hora, Cecilia Llamosas, PhD, Penguin’s Director of Energy Strategy & Partnerships and a specialist in energy and technology, makes the case that Paraguay sits before an unprecedented opportunity: to use its clean, firm energy to become a key player in the global energy and digital transition.

The quotes below are translated from the original Spanish-language column.

She points to the country’s growing international profile. A recent mention in the US Senate by Secretary of State Marco Rubio, who singled out Paraguay as a strategic destination for data centers and artificial intelligence (AI), is one sign of the mounting global interest.

“In a world where AI-linked energy demand is growing rapidly, having renewable, firm, available, and competitive energy is, without doubt, a structural advantage.”

But that advantage alone is not enough to attract the investment needed to build a solid digital industry, Llamosas argues. Turning potential into real development means strengthening the rest of the digital ecosystem and adopting more integrated, coordinated public policy to convert interest into sustained investment.

Three strategic pillars

Llamosas sets out three pillars that could consolidate Paraguay as a hub for digital innovation:

1. Robust digital connectivity

Advancing toward a redundant, high-capacity fiber-optic network is key. In the 2024 Network Readiness Index (NRI), Paraguay scored 42.26, ranking 94th of 133 countries, and its weakest of the four pillars was Technology, at just 30.40 of 100. Attracting AI data-center investment, she writes, demands stronger international connectivity, network redundancy, low latency, and high bandwidth.

2. Energy capacity for the future

Paraguay’s electricity system faces the risk of exhausting its surplus from 2027 onward if no new sources come online, with demand growing at rates above 18%. Investments such as the 22 small hydroelectric plants, solar parks, and other projects in ANDE’s Generation Master Plan 2024–2043 matter, but Llamosas urges that they be executed faster and synchronized with the growth of high-consumption industries like data centers.

3. An attractive regulatory and operating environment

Paraguay can stand out as an investment destination by easing the import of capital goods for technology, building specialized technical training, and developing modern regulatory frameworks. That includes predictable electricity tariffs and long-term supply contracts for this kind of investment, plus clear rules on energy integration, security, and fiscal incentives.

The challenge ahead

“International interest is real, and the foundational conditions are in place. The challenge now is to align wills and accelerate actions to rise to our potential.”

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About Penguin

Penguin develops and operates industrial-scale digital infrastructure in Paraguay, transforming the country’s abundant renewable energy into human potential. Penguin’s flagship site near the Itaipú Dam is powered entirely by 100% renewable hydroelectric energy.

This article summarizes an opinion column written by Cecilia Llamosas and originally published by Última Hora on June 4, 2025.