Paraguay secures up to $50B from X8 Cloud for AI data center
U.S.-based X8 Cloud has announced plans to invest up to $50 billion in Paraguay over the next three decades to build what it claims will be the largest artificial intelligence data center in South America.
Construction is expected to begin in 2026, pending regulatory approvals, News.Az reports, citing foreign media.
X8 Cloud CEO Juan Carlos Dueñas said the company selected Paraguay because of its abundant hydroelectric supply and its stable relationship with the United States.
He noted that X8 is in discussions with the U.S. Department of Commerce and sees growing interest from American companies looking at Paraguay as an investment destination. The project would rely entirely on power from the Itaipú and Yacyretá binational dams.
The first phase calls for a $250 million investment to install six megawatts of capacity and more than 4,000 NVIDIA H100 class graphics processors. A second stage would expand the site to 250 megawatts and more than 165,000 GPUs, lifting total investment beyond $10 billions and potentially toward $50 billion under the long term plan.
A 250 megawatt data center is roughly comparable to the electricity use of a small U.S. city.
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