Crusoe is taking its AI cloud to Paraguay through a partnership with local infrastructure developer Araico, targeting initial service in mid-2027 and a path to 106 MW of IT capacity. The October 22 agreement marks Crusoe’s first dedicated Latin American AI cloud deployment, extending its strategy of selecting compute locations around available power.

The site will sit beside the Itaipú substation and draw hydroelectric power from the Itaipú dam. Araico will lead local development and site infrastructure, while Crusoe will supply and operate the compute. Crusoe Cloud will serve customers in the United States and Latin America.

The plan includes longer-term options to reach approximately 280 MW in total. The announcement does not specify initial deployment capacity, GPU models, network architecture or project cost. The 106 MW figure describes a scaling path for IT load; it is not a commitment to deliver that capacity at the mid-2027 launch.

“Crusoe was founded on a simple idea: build digital infrastructure where power is abundant, accessible and environmentally-aligned,” said Cully Cavness, Co-founder, President and Chief Strategy Officer of Crusoe.

Analysis

Paraguay adds a hydroelectric option to Crusoe’s power strategy. Its separate Abilene expansion for Microsoft includes dedicated on-site generation, while its Aalo Atomics collaboration targets a nuclear-powered demonstration in 2027. These projects illustrate different ways to pair compute with electricity supply. For Paraguay, the next milestones to watch are the initial service launch and subsequent capacity additions.