Paraguay to End Special Power Contracts for Bitcoin Miners by 2027, Prioritizing AI Data Centers
Paraguay's state electricity utility, ANDE, has announced that special power contracts for intensive users, including Bitcoin mining operations, will terminate on December 31, 2027, with no extensions planned. This decision marks a significant shift in the country's energy policy, as ANDE is simultaneously signing 15-year deals with AI data centers. The contracts set to expire cover approximately 943.8 MW of hydropower, primarily from the Itaipú and Yacyretá dams, which had made eastern Paraguay an attractive location for crypto mining. The government is now redirecting this energy advantage towards AI and high-performance computing data centers, offering them longer-term agreements at around $49/MWh, compared to the $30/MWh currently paid by miners. This policy change has already seen the number of legal mining operators in Paraguay decrease from 71 to 41.
