HIVE Digital Technologies has committed more than $250 million to data centers in Paraguay over the last 18 months. The aim is to help build an AI hub in the South American country.
What HIVE is building
The Nasdaq-listed company has put its money into Tier 1 data centers near the Itaipú hydroelectric dam. Those sites currently run at 300 megawatts (MW) of capacity.
The next phase is bigger. HIVE plans to lift capacity to 400 MW at its Yguazú facility by the third quarter of 2026.
Add energy procurement and infrastructure costs, and total commitments exceed $400 million. The $250 million figure is the data center spend. The larger number reflects the full cost of keeping the lights on and the machines humming.
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.
HIVE refers to the next stage of these facilities as “Tier 3 AI factories.”
Jobs, schools, and diplomacy
HIVE’s leadership, including Executive Chairman Frank Holmes, has leaned heavily on the local impact story. 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 also caught attention. HIVE’s investment came before recent diplomatic activity between the US and Paraguay.
How HIVE got here
HIVE entered Paraguay in 2025 by acquiring a hydro-powered site from Bitfarms. In roughly the span of a year and a half, that foothold has grown into a 300 MW operation with a clear expansion runway.
What this means for HIVE and the market
There are execution risks worth watching. Going from 300 MW to 400 MW by the third quarter of 2026 requires the Yguazú build to stay on schedule.
The scale of the spending is also notable. With total commitments north of $400 million, HIVE has tied a large share of its future to a single country’s grid, politics, and regulatory environment.
The things to track from here are straightforward: whether the 400 MW target arrives on time, how much of HIVE’s capacity ends up serving AI and HPC clients versus mining Bitcoin, and whether the US-Paraguay diplomatic warming translates into more compute demand flowing south.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.