Paraguay plans to end special crypto power contracts by 2027
Paraguay's state electricity utility ANDE will end special power contracts for crypto mining operations on December 31, 2027, with no extensions planned.
The contracts cover operators drawing a collective 943.8 MW from Paraguay's surplus hydropower, primarily from the Itaipú and Yacyretá dams. This electricity has made eastern Paraguay an attractive mining destination, but the government is now prioritizing other sectors.
AI in, miners out
ANDE is signing 15-year deals with AI and high-performance computing data centers priced around $49/MWh. Kuntur, linked to Araico and the planned $12 billion Iguazú AI City project, secured a 15-year contract for up to 286 MW, starting at 6 MW in December 2026 and ramping up gradually.
HIVE faces major impact
HIVE Digital Technologies is the most exposed public miner, with approximately 77-80% of its operating capacity in Paraguay. The company runs two facilities - Yguazú (200 MW) and Valenzuela (100 MW) - that have powered much of its recent hashrate growth.
Those locations have powered much of the company's recent hashrate growth. That growth now sits on power contracts with a fixed end date and no renewal path under the current rules.
Rising costs and enforcement
The number of legal mining operators in Paraguay has already dropped from 71 to 41 following strict enforcement against illegal grid connections. Tariffs for crypto mining have risen to around $30/MWh, roughly double earlier levels, with additional upfront deposit requirements now required.
Government priorities
The government is favoring projects that create more jobs and commit to longer horizons. AI data centers offer a bigger economic footprint and longer-term relationships compared to crypto mining operations. Despite the shift, ANDE is expected to continue generating hundreds of millions of dollars annually from intensive users.
Transition uncertainties
For HIVE shareholders, the key question is what happens to roughly three-quarters of the company's operating capacity after December 31, 2027. The timing creates a gap as Kuntur's AI campus begins at just 6 MW in December 2026 while miners' 943.8 MW of contracted load faces the 2027 cutoff.
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