Data Centers in Paraguay

Paraguay – Clean Energy for Low Cost Compute

Paraguay is a primary choice for operators needing massive, sustainable power at some of the lowest price points in the Western Hemisphere. By leveraging a surplus of carbon-neutral hydroelectricity, the country provides a stable environment for energy-intensive workloads like high-performance computing and regional disaster recovery. This unique energy profile directly supports high-uptime requirements while keeping operational expenses far below regional averages.

Paraguay: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: between 10 and 20 as of January 2026. While the market is smaller than its neighbors, it maintains a healthy mix of local providers and regional players. Most facilities in Asunción offer neutral access to the primary domestic backbone, ensuring competitive options for local transport.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of January 2026. There are currently no direct physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure located within the borders. Traffic typically routes through São Paulo, Brazil. Dedicated private extensions are available through regional carriers to bridge this gap.

Internet Exchange Points (IXPs): The primary exchange is IX.py, managed by the Centro Nacional de Computación, which helps keep local traffic within the country to reduce latency and transit costs.

Bare Metal: High-performance hardware is available through regional providers like Latitude.sh, which supports automated deployments for specific workloads as of January 2026.

Power Analysis

Average Cost Of Power: Industrial electricity is approximately $0.05/kWh as of January 2026. The power mix is roughly 100% hydroelectric, largely supplied by the Itaipu Dam. This creates a unique environment where high-density cooling and massive compute clusters can operate with a minimal carbon footprint and industry-leading price stability.

Power Grid Reliability: The national grid is well-engineered and benefits from a massive surplus of domestic generation. Data center corridors in Asunción and Fernando De La Mora utilize redundant feeds from multiple substations to ensure consistent uptime as of January 2026.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are concentrated in Asunción and the surrounding Greater Asunción area, providing direct access to the nation financial and government headquarters. Facilities in Ciudad del Este serve the busy tri-border trade zone near Brazil and Argentina.

Regional Market Reach: Paraguay serves as a low-cost bridge between the large markets of Brazil and Argentina. It is an ideal location for caching content or hosting back-office functions for the wider Mercosur region.

Tax Advantage For Data Centers: The simple 10% VAT and corporate tax structure keep administrative overhead low. The overall low cost of doing business provides a significant financial advantage for long-term deployments as of January 2026.

Natural Disaster Risk

The overall natural disaster risk for Paraguay is Low, with a score of 3.0 out of 10 as of January 2026. The country is geologically stable, making it a safe choice for physical infrastructure.

• River Flood (5.6): The most frequent natural hazard, primarily affecting areas near the Paraguay and Paraná rivers.
• Epidemic (5.6): Identified as a moderate risk factor for operational continuity.
• Drought (3.9): Can impact water-cooled facilities, though the abundance of hydroelectric resources provides a buffer.
• Earthquake (0.1): Seismic activity is negligible, representing almost no risk to structural integrity.

Other natural hazards, such as tropical cyclones or tsunamis, are not material risks for this inland geography as of January 2026.