Data Centers in Paraguay

Paraguay – South America's Low-Cost Power Hub

Paraguay offers a compelling environment for companies prioritizing power-intensive computing and regional disaster recovery. Its combination of extremely low-cost, 100% renewable hydroelectric power and a minimal natural disaster risk profile creates a unique operational advantage for workloads that require high uptime and predictable energy costs.

Paraguay: At A Glance

Network & Connectivity Ecosystem

Paraguay's connectivity ecosystem is developing, centered around the capital city of Asunción. While not a primary interconnection hub, it provides sufficient infrastructure for local and regional operations.

Carrier Density & Carrier Neutrality Carrier density is modest, with major regional and local providers present in the 4 data centers as of September 2025. Carrier-neutral facilities are available, offering a choice of providers for redundancy.

Direct Cloud On-Ramps There are no direct cloud on-ramps within Paraguay as of September 2025, meaning public cloud access relies on standard internet transit or private network extensions. The closest major cloud regions and on-ramp locations are in São Paulo, Brazil. Organizations can establish private wave or PNI circuits to these hubs for secure, low-latency access.

Internet Exchange Points (IXPs) The primary exchange is IXP.py in Asunción. Peering at this IXP improves latency and performance for domestic traffic by keeping it within national borders, reducing reliance on international transit.

Bare Metal Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers like Latitude.sh offer solutions suitable for the Latin American market.

Power Analysis

Paraguay's greatest strategic advantage is its power infrastructure, sourced almost entirely from the massive Itaipu and Yacyretá hydroelectric dams.

Average Cost Of Power The industrial electricity price is approximately $0.049/kWh as of September 2025. This exceptionally low rate provides a significant operational cost advantage for high-density deployments like HPC or crypto mining. The power mix is nearly 100% renewable hydropower.

Power Grid Reliability The national power grid is stable, particularly in the metropolitan area of Asunción where data center infrastructure is concentrated. The vast supply from hydroelectric sources ensures consistent and reliable power delivery.

Market Access, Business & Tax Climate

Paraguay offers a central, low-cost base for serving South American markets.

Proximity To Key Business Districts Data centers are located in and around Asunción, providing low-latency access to the nation's financial, government, and commercial sectors.

Regional Market Reach Positioned centrally on the continent, Paraguay can serve as an effective disaster recovery site or secondary location for businesses operating primarily in Brazil, Argentina, Uruguay, and Bolivia.

Tax Advantage For Data Centers There are no specific tax incentives targeting data center development or operation as of September 2025. The primary financial benefit remains the exceptionally low operational expense driven by low-cost, renewable energy.

Natural Disaster Risk

Paraguay has a very low natural disaster risk profile, enhancing its suitability for critical infrastructure.

Based on the INFORM Risk Index, Paraguay has an overall risk score of 3 out of 10, classifying it as a "Low" risk country as of September 2025. The primary natural hazards to consider are related to weather and climate patterns, while catastrophic event risk is minimal.

• River Flood: The most significant risk, particularly along the Paraguay and Paraná rivers.
• Drought: A notable secondary risk that can impact agriculture and water levels.
• Epidemic: A factor in regional health and institutional planning.

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