A Small Country with Big Ambitions
In the heart of South America, a quiet revolution is taking place. Paraguay, often overlooked in regional tech discussions, is now making bold strides toward becoming a key hub for innovation, investment, and digital talent. And it’s not just wishful thinking—international media like the BBC, Entrepreneur.com, and SwitchTV News, as well as national outlets such as La Nación and Asunción Times, have all spotlighted Paraguay’s growing momentum as a potential “Silicon Valley of Latin America.”
Why Paraguay?
1. Clean, Abundant, and Cheap Energy
One of Paraguay’s strongest competitive advantages lies in its electricity. The country generates nearly 100% of its power from renewable sources, primarily hydroelectric energy from the massive Itaipú Dam—making Paraguay one of the greenest energy producers in the world.
This surplus of clean and affordable energy has turned Paraguay into a magnet for industries that demand high power consumption, including:
- Data centers
- Crypto mining
- Artificial Intelligence (AI) infrastructure
- Hydrogen production
Vice Minister of Industry Marco Riquelme stated in a BBC interview:
“Our energy isn’t just green—it’s a gateway to new industries.”
2. A Young Population, Digitally Upgrading
Another key advantage is Paraguay’s demographic dividend. With over 56% of the population under the age of 30, the country has a large, dynamic, and trainable workforce.
Initiatives such as “Programando Paraguay” have already trained thousands of young people in programming, digital skills, and tech entrepreneurship. Other notable educational projects include:
- Taiwan-Paraguay Polytechnic Campus
- Girls Code Paraguay
- Public-private innovation labs (LABs)
Technology Minister Claudia Centurión explained:
“The road to becoming a tech hub is not only about infrastructure—it’s about empowering our youth with knowledge.”
3. Political Strategy: The National ICT Plan
Since 2022, the Paraguayan government has been implementing the “Plan Nacional TIC 2022–2030”, a comprehensive strategy to accelerate digital transformation. The plan includes:
- National broadband expansion (including rural zones)
- Governmental digitalization (e-Gov, open data)
- Cybersecurity frameworks
- Start-up and innovation funding
Paraguay is also working with strategic partners like Taiwan, Canada, and South Korea to enhance its infrastructure, tech education, and cyber defense capabilities.
4. The Digital District: Building a New Innovation Hub
At the core of Paraguay’s innovation drive is the upcoming “Distrito Digital”—a large-scale tech campus to be built near the international airport in Asunción. Scheduled to begin construction in late 2025, it will host:
- Universities and tech training centers
- Incubators and accelerators
- National and international tech companies
- Government innovation agencies
The vision is to create a fertile ecosystem where education, business, and public policy intersect to drive exponential innovation.
Global Recognition and International Attention
While the BBC praised Paraguay’s vision, it also pointed to necessary improvements:
“The country has tremendous potential—but to truly become a Silicon Valley, it must build resilient ecosystems, attract more capital, and expand international networks.”
Entrepreneur.com highlighted growing U.S. interest in Paraguay, especially in AI-related sectors. One U.S. tech CEO commented:
“Paraguay could become the most energy-efficient location for our AI infrastructure globally.”
And indeed, investor interest is on the rise. In 2024, Paraguay raised more than $2 million in venture capital for local start-ups—more than the total of the past nine years combined.
Conclusion: A Vision with Real Substance
Paraguay may not look like a traditional tech epicenter. It has no coastline. Its capital isn’t a mega-metropolis. But that’s precisely the point. The country’s energy surplus, low taxes, affordable living, and stable political climate offer a unique and compelling opportunity.