Data Centers in Paraguay

Paraguay – South America's Renewable Power Hub

Paraguay represents a specialized market for digital infrastructure, tailored for organizations with power-intensive workloads that are not latency-sensitive. Its primary advantages are some of the lowest renewable energy costs in the world and a low-risk natural disaster profile. This makes it an exceptional choice for high-performance computing, data archiving, rendering, and disaster recovery sites supporting primary operations elsewhere in the region.

Paraguay: At A Glance

Network & Connectivity Ecosystem

Paraguay is an emerging market focused on building out its domestic and regional connectivity. While not a primary interconnection hub, it offers foundational infrastructure for serving the local population and specific use cases.

• Carrier Density & Carrier Neutrality: The market is served by several national and regional carriers. There are 4 colocation facilities available, as of September 2025, primarily located in and around the capital, Asunción.
• Direct Cloud On-Ramps: There are no direct, in-country cloud on-ramps from major hyperscalers, as of September 2025. Access to AWS, Google Cloud, and Microsoft Azure is routed through network points of presence in São Paulo, Brazil. Dedicated access can be established via private network extensions.
• Internet Exchange Points (IXPs): The primary exchange is IXP.py in Asunción. It facilitates the majority of domestic traffic exchange, improving local performance and reducing reliance on international transit for in-country communications.
• Bare Metal: Bare metal server options are available, primarily through providers focused on the Latin American market. Providers like Latitude.sh offer compute instances directly from Paraguay for latency-sensitive local applications.

Power Analysis

Paraguay's power infrastructure is its most significant strategic asset for data center operations. The country is one of the world's largest exporters of electricity, derived almost entirely from hydropower.

• Average Cost Of Power: At an industrial rate of approximately $0.049/kWh, as of September 2025, power costs are exceptionally low. This provides a compelling economic advantage for high-density deployments and power-intensive computing.
• Power Grid Reliability: The national grid, anchored by the massive Itaipu and Yacyretá hydroelectric dams, is very stable. Data centers in the main economic zones are supported by well-maintained transmission infrastructure, with all commercial facilities offering standard N+1 or greater redundancy with UPS and generator backup.

Market Access, Business & Tax Climate

Paraguay offers a stable business environment with straightforward market access, though it lacks specific financial incentives for the data center sector.

• Proximity To Key Business Districts: Data centers are concentrated near Asunción, the nation's capital and economic center. This provides low-latency connectivity for the government, financial institutions, and major corporate entities operating in the country.
• Regional Market Reach: While landlocked, Paraguay's central location is suitable for serving its domestic market of nearly 7 million people. It can also act as a secondary disaster recovery location for businesses in southern Brazil, northern Argentina, and Bolivia.
• Tax Advantage For Data Centers: The primary financial advantage comes from low operating expenses, not tax policy. While Paraguay has a simplified tax system, no specific tax exemptions or credits are offered for the development or operation of data centers.

Natural Disaster Risk

Paraguay has a very low risk profile for natural disasters, making it a physically secure location for critical infrastructure. The country's overall INFORM Risk score is 3.0 out of 10, classifying it as a low-risk environment, as of September 2025.

Key risk factors are limited to:

• River Flood: The most significant natural hazard, with a score of 5.6/10. This risk is confined to low-lying areas near the Paraguay and Paraná rivers and is mitigated by proper site selection for data centers.
• Epidemic: Rated at 5.6/10, reflecting regional public health infrastructure challenges.
• Drought: A moderate risk at 3.9/10, though the scale of the country's hydroelectric reservoirs provides a substantial buffer against power disruption.

Risks from earthquakes, tsunamis, tropical cyclones, and coastal floods are negligible.