HIVE is deploying renewable energy AI infrastructure in Paraguay to transition Bitcoin mining towards high-performance computing

Source: CritpoTendencia Original Title: HIVE bets on Paraguay to scale AI infrastructure with renewable energy Original Link: https://criptotendencia.com/2026/01/20/hive-apuesta-por-paraguay-para-escalar-infraestructura-de-ia-con-energia-renovable/ HIVE Digital Technologies announces its strategic expansion in Paraguay through a joint venture with the country’s major telecom operator. This move marks a new step for the company to transform its energy and mining infrastructure into a platform for artificial intelligence (AI) and high-performance computing (HPC) targeted at the South American region.

The initiative includes launching BUZZ Cloud, one of the first AI platforms designed specifically for Paraguay. The platform will be located in Asunción, hosted in a tier-3 data center, dedicated to providing advanced computing capabilities for universities, research centers, enterprises, financial institutions, and healthcare providers.

Initial deployment is planned for Q1 2026, starting with enterprise GPU clusters ready for training, inference, and data-intensive workloads, designed with flexibility to scale based on demand and capital availability.

From Bitcoin Mining to AI Infrastructure

HIVE has established operational bases in Paraguay, developing tier-1 data centers and substations supported by large-scale renewable hydropower.

The company views Bitcoin mining as a mechanism to monetize excess or underutilized electricity, converting energy into economic value. Under this logic, each BTC represents an “energy package,” and the infrastructure created to produce it can evolve into more complex uses, such as tier-3 data centers for AI and HPC.

This incremental approach aims to optimize capital utilization: starting with infrastructure of lower investment density, and as the ecosystem matures, gradually advancing to facilities capable of supporting GPU-based advanced enterprise workloads. HIVE believes this path replicates patterns observed in Texas (especially from San Antonio towards the western corridor of the state).

Energy, Connectivity, and Macro Background

HIVE’s long-term strategy is based on two key pillars: reliable power supply and high-capacity dark fiber connectivity, which are crucial for low-latency AI operations and secure data transmission. Paraguay offers an attractive combination of abundant renewable energy, recent macroeconomic stability, and a political environment conducive to foreign investment.

Meanwhile, the expansion occurs against the backdrop of strengthened institutional ties between Paraguay and the United States. In December 2025, the two countries signed the Status of Forces Agreement (SOFA), a routine framework in U.S. foreign policy that enhances bilateral cooperation and could bolster confidence in long-term investment mechanisms.

Economic Impact and Regional Outlook

HIVE expects investments in AI and HPC infrastructure to have a stimulating effect on the local economy, including increased demand for technical talent such as computer engineers, data scientists, and electrical specialists.

Currently, the company’s tier-1 operations in Paraguay utilize about 300 MW, with potential for further expansion in 2026 depending on market conditions and regulatory approvals.

Through BUZZ Cloud, HIVE aims to position Paraguay as an emerging high-performance computing hub in South America, combining renewable energy, enterprise data centers, and a scalable digital infrastructure aligned with the AI economy.