HIVE Digital Technologies has committed more than $250 million to data centers in Paraguay over the last 18 months, funding an effort to build an AI hub in the South American country. The Nasdaq-listed company said total commitments, including energy procurement and infrastructure costs, exceed $400 million.
What HIVE is building
HIVE has invested in Tier 1 data centers near the Itaipú hydroelectric dam. Those sites currently operate at 300 megawatts of capacity.
The company plans to raise capacity to 400 MW at its Yguazú facility by the third quarter of 2026. It describes the next stage of these facilities as “Tier 3 AI factories.”
The $250 million figure represents data center spending, while the broader commitment above $400 million reflects the full cost of energy procurement and infrastructure needed to operate the sites.
On the mining side, HIVE currently produces approximately 8.5 BTC per day from its operations. The company is also exporting compute capacity to the United States.
Jobs, schools and diplomacy
HIVE’s leadership, including Executive Chairman Frank Holmes, has emphasized the local impact of its investment. The company says it has added more than 300 positions, including 40 new engineering roles.
It has also launched educational programs backed by technology partnerships. Those efforts include supplying Starlink connectivity and computers to support local schooling.
The timing of the investment drew attention because it came before recent diplomatic activity between the United States and Paraguay.
How HIVE got here
HIVE entered Paraguay in 2025 by acquiring a hydro-powered site from Bitfarms. In roughly a year and a half, that foothold has grown into a 300 MW operation with a clear expansion runway.
What to watch
The expansion carries execution risks. Reaching 400 MW by the third quarter of 2026 depends on the Yguazú build staying on schedule.
The scale of the spending is also notable. With total commitments above $400 million, HIVE has tied a large share of its future to a single country’s grid, politics and regulatory environment.
Key items to track include whether the 400 MW target arrives on time, how much of HIVE’s capacity serves AI and high-performance computing clients versus Bitcoin mining, and whether the US-Paraguay diplomatic warming translates into more compute demand flowing south.
