ASUNCIÓN, Paraguay — It’s not the first place that comes to mind when you think of global tech hubs. But Paraguay, a landlocked country known more for soy and cattle than software and code, says it’s ready to join the digital big leagues.
And it’s making a bold pitch: clean energy, cheap power, and a young, eager workforce.
“We’ve got the foundation. Now we want the world to take a second look,” says Claudia Centurión, Paraguay’s Minister of Technology and Innovation.
For years, the country has quietly enjoyed one of the most consistent supplies of renewable electricity in the world. That’s thanks to the Itaipu Dam, a colossal hydroelectric plant on the border with Brazil, which provides Paraguay with more energy than it can use.
Now, the government wants to turn that surplus into economic fuel.
A Country of Quiet Potential
Paraguay’s economy has long flown under the radar. It’s stable, its debt is low, and its demographics skew young. Over 60% of the population is under 35.
But while neighbouring countries like Brazil and Argentina grab headlines with their startup scenes, Paraguay has often been left out of the conversation.
That may be changing.
The government is pushing a national plan to digitise public services, encourage coding in schools, and offer tax breaks to tech investors. International data centres and crypto mining operations have already begun taking notice, drawn by low electricity prices and stable infrastructure.
“Electricity here is clean, cheap, and plentiful. That’s a huge advantage,” says Carlos Paredes, a local entrepreneur who runs a software company in Asunción. “But what we really need is investment in talent and education.”
Betting on the Young
That investment is slowly trickling in. New coding academies are popping up across the capital. The government has partnered with regional universities to offer scholarships in data science and engineering. And small tech parks are beginning to take shape.
But it’s early days.
“We have to build an ecosystem not just buildings with internet,” says Lucía Ortega, a 25-year-old app developer who returned to Paraguay after studying in Mexico. “Right now, too many people still see tech as something that happens somewhere else.”
Still, for young Paraguayans, the shift is inspiring.
“It gives us hope,” Ortega says. “I don’t want to have to leave to find opportunities. I want to build something here.”
A Clean Energy Magnet
Energy is at the centre of Paraguay’s pitch. Itaipu, jointly owned with Brazil, is one of the largest hydroelectric dams in the world. It produces more than 75 terawatt hours of electricity annually enough to power all of Paraguay and still export to Brazil.
That power is what has drawn interest from companies in energy-hungry sectors like crypto and cloud computing.
But critics warn the country must tread carefully.
“If we sell cheap power to foreign firms without building our own capacity, we risk missing the real opportunity,” says Dr. Julio Ramírez, an economist at the National University of Asunción. “This isn’t just about hosting servers — it’s about building skills and retaining talent.”
The Road Ahead
There are hurdles. Paraguay still struggles with patchy internet access in rural areas. Corruption and bureaucracy, though lower than in some neighbours, remain a challenge. And the country’s tech talent pool is still small by global standards.
Yet there is cautious optimism.
“We know we’re not Silicon Valley,” Minister Centurión says with a smile. “But we believe we can be a South American version one that fits our context, our strengths.”
That means starting small, focusing on niche sectors, and growing from the inside out. And with clean energy, a young population, and political will on its side, Paraguay might just be on the right path.
Whether the world is ready to pay attention is another question entirely.
