Paraguay's electricity market is intensifying competition between Bitcoin miners and AI infrastructure developers, with significant implications for the country's mining industry.
The mining sector currently generates approximately $350 million annually in electricity revenue for state utility ANDE through roughly 944 megawatts of capacity. However, the landscape is shifting as AI projects lock in long-term power arrangements.
AI Infrastructure Secures Long-Term Agreements
In October 2026, ANDE signed a 15-year electricity supply agreement with Kuntur S.A. for an AI infrastructure project. The deal allocates up to 286 megawatts, with initial deliveries of 6 MW beginning December 1, 2026, and full capacity expected by April 2029.
This extended commitment contrasts sharply with existing cryptocurrency mining contracts in the country.
Bitcoin Mining Operations Face 2027 Deadline
HIVE Digital Technologies operates approximately 300 megawatts across two Paraguayan facilities: 200 MW at Yguazú and 100 MW at Valenzuela. According to HIVE's 2026 annual report, electricity purchase agreements for both sites expire on December 31, 2027.
Paraguay's state utility plans to allow all special cryptocurrency power contracts to expire on that same date.
Competitive Pressure on Mining Economics
The divergence in contract terms reflects broader market dynamics. Bitcoin miners currently operate under flat rates of $44 per megawatt-hour, while AI data centers are securing 15-year agreements at potentially more favorable terms.
Continued operations for mining companies beyond 2027 will depend on renegotiating existing arrangements or securing replacement electricity agreements on commercially acceptable terms. The coming two years will be critical for established mining operators seeking to maintain dependable power supply as competition for Paraguay's hydroelectric resources intensifies.
