Paraguay’s state-owned electricity company ANDE plans not to renew special electricity contracts for Bitcoin miners after the end of 2027, while signing a 15-year supply agreement for an artificial intelligence campus to be built in the country.
According to CoinDesk, ANDE set December 31, 2027, as the deadline for miners’ special contracts. As of April, approximately 944 megawatts of electricity had been allocated to miners. The fixed rate of $44 per megawatt-hour turned Paraguay into a major mining hub. According to Hashrate Index, the country accounted for approximately 4% of global Bitcoin mining power in the second quarter.
Up to 286 megawatts of electricity for the AI campus
On October 22, ANDE agreed to supply up to 286 megawatts of electricity to the planned AI campus in Yguazú, which is linked to Araico. Supply is set to begin with 6 megawatts on December 1 and rise to 146 megawatts in April 2028. The average price for most of the supply is $48.91 per megawatt-hour.
Three-quarters of HIVE’s operating capacity is in Paraguay
Agreements totaling 300 megawatts and covering HIVE Digital Technologies’ two facilities in Paraguay also expire at the end of 2027. As of the end of April, 297 megawatts of the company’s 385 megawatts of operating capacity were at these two facilities. In its annual report, HIVE said that continued operations depended on its ability to renegotiate the contracts.
A group of engineers within ANDE, meanwhile, proposed limiting the total power allocated to mining, AI, and data centers to 700 megawatts starting in 2028 and allocating the electricity through an auction. The proposal has not yet been adopted.
Not investment advice.