AGP Executive Report

AI Investment: Paraguay joined the US-led Pax Silica initiative to secure AI supply chains, while HIVE’s BUZZ HPC secured about $129 million in financing for a contracted AI computing cluster, adding momentum to the country’s data-center ambitions. Trade and Industry: Maquila exports topped $1.14 billion in 2026, signaling continued manufacturing growth. Paraguay is also seeking deeper trade, investment and technology ties with India; bilateral trade reached about $514 million in 2025. Regional Risks: An OAS forecast warns that a strong El Niño could bring excess rain and flooding to the La Plata Basin, including Paraguay, raising risks for infrastructure, energy and agriculture. Chaco Development: A planned Holiday Inn in Loma Plata is the first phase of a mixed-use complex, with the hotel and shopping centre together expected to cost about $20 million.

AI Investment: HIVE secured about $129 million in fixed-rate financing for sovereign AI infrastructure, adding momentum to its planned $250 million-plus data center project near Itaipu. Paraguay also joined the US-led Pax Silica initiative to strengthen AI supply chains. Manufacturing Exports: Maquila exports topped $1.14 billion in 2026, signaling continued expansion in export manufacturing. Chaco Development: A 114-room Holiday Inn is planned for Loma Plata, the first phase of a mixed-use complex whose hotel and shopping-centre stages represent about $20 million in investment. Trade Links: Paraguay is seeking to deepen ties with India in investment, digital infrastructure, renewable energy and industrial cooperation; bilateral trade reached about $514 million in 2025.

AI Investment: Paraguay joined the US-led Pax Silica initiative, positioning its clean energy and mineral resources within efforts to secure AI supply chains. The move comes as HIVE plans to invest more than $250 million in data centers near Itaipú and a separate US-backed technology project eyes Itaipú power. Manufacturing: Maquila exports topped $1.14 billion in 2026, reflecting continued expansion in export-oriented production. Financial Sector: The central bank is under pressure over a lender with political ties, putting oversight in focus. Climate and Infrastructure: Flooding along the Paraná has displaced 4,200 families, while forecasters warn the La Plata Basin—including Paraguay—faces elevated flood risks from a strong El Niño in 2027.

AI Supply Chains: Paraguay joined the US-led Pax Silica initiative, becoming its 26th signatory. The pact aims to secure AI supply chains, with Paraguay bringing clean energy and critical minerals; HIVE has also pledged more than $250 million for an AI hub near Itaipú. Manufacturing: Maquila exports topped US$1.14 billion in 2026, pointing to continued expansion in export manufacturing. Mercosur Trade: Brazil’s Lula won re-election, preserving a key partner for the EU-Mercosur agreement. Brazilian markets fell sharply after the result, while the deal’s future remains important for Paraguay’s regional trade prospects.

Regional Trade: Brazil’s Lula won a fourth term, and Paraguay’s Santiago Peña congratulated him, reaffirming a shared agenda on integration and development. The result also eases concerns over the EU-Mercosur trade deal, though Brazilian assets sold off sharply after the vote. AI Investment: Paraguay joined a US-led AI infrastructure pact, while a separate US agreement would use Itaipú power for a technology project. HIVE plans to invest more than $250 million in an AI hub near the dam, adding to a growing cluster of data-center projects. Manufacturing: Maquila exports topped $1.14 billion in 2026 as the sector expanded. Banking: Paraguay’s central bank faces pressure over a lender with political ties.

Brazil & Mercosur: Lula’s re-election sent Brazilian assets tumbling as investors unwound bets on a Bolsonaro victory. His support for the EU-Mercosur deal offers continuity for a trade pact important to Paraguay, though the market reaction signals investor uncertainty. AI Investment: HIVE plans to invest more than $250 million in an AI data-center hub near Itaipu. Paraguay has also joined a U.S.-led AI infrastructure pact and signed a deal to use Itaipu power for a technology project. Manufacturing Exports: Maquila exports have topped $1.14 billion in 2026, reflecting continued growth in the export-oriented manufacturing sector. Export Diversification: Paraguayan yerba mate is making inroads in Türkiye, where exporters are seeking customers in a market dominated by black tea.

Brazil ties: Lula won re-election with 51.78% of the vote, and Paraguay’s Santiago Peña said the countries would continue working on integration and development. Flávio Bolsonaro said he would seek to annul the result. AI investment: HIVE says it has committed more than $250 million to data centers near Itaipú and plans to expand its Yguazú site to 400 megawatts. Paraguay also joined a US-led initiative exploring how its hydropower and mineral resources could support AI infrastructure. Exports: Maquila exports topped $1.14 billion in 2026 as manufacturing expanded. Paraguay is also promoting yerba mate in Türkiye as part of efforts to grow food exports. Flood impact: Paraná River flooding has displaced about 4,200 families in eastern Paraguay, with further rises possible.

Export Push: Paraguay is promoting yerba mate in Türkiye, where officials see room to broaden food exports to a market of 85 million people. AI Investment: HIVE says it has committed more than $250 million to data centers near Itaipú and plans to expand capacity; separately, US firm Crusoe and Paraguayan developer Araico plan a hydropower-backed computing project targeted to begin operating in mid-2027. Paraguay has also joined a US-led AI infrastructure initiative. Manufacturing: Maquila exports have topped $1.14 billion in 2026 as the sector expands, adding momentum to Paraguay’s export growth. Financial Stability: The central bank faces pressure over concerns about the solvency of a politically connected lender, putting scrutiny on the country’s financial oversight. Agribusiness: Paraguay’s coffee market has reached $59 million as local growers work to revive production.

AI Investment: HIVE says it has committed more than $250 million to Paraguay data centers powered by Itaipú, with capacity targeted to reach 400 MW. Separately, US firm Crusoe and Paraguayan developer Araico plan a high-performance computing project, expected to begin operating in 2027; investment and power-supply terms remain undisclosed. Paraguay also joined the US-led Pax Silica initiative on AI infrastructure and critical minerals. Manufacturing: Maquila exports have topped $1.14 billion in 2026, signaling continued expansion in export-oriented production. Financial Oversight: Political pressure is mounting on the Central Bank over its supervision of fast-growing ueno bank, a case that could test confidence in Paraguay’s financial system. Flood Impact: Paraná River flooding has displaced about 4,200 families in eastern Paraguay, disrupting communities and infrastructure along a key regional waterway.

AI Investment: HIVE has committed more than US$250 million to Paraguay data centers powered by Itaipú hydropower, with 300 MW operating and expansion to 400 MW planned. Paraguay also joined the US-led Pax Silica AI initiative, while US firm Crusoe and local partner Araico plan a high-performance computing facility expected to begin operating in mid-2027; investment and power-supply terms have not been disclosed. Financial Oversight: Paraguay’s central bank faces calls for leadership changes over its supervision of politically connected ueno bank, which says it has 3 million customers and manages roughly US$800–850 million in public funds. The dispute is testing confidence in the regulatory reputation that helped the country secure investment-grade status. Manufacturing: Maquila exports topped US$1.14 billion in 2026, signaling continued expansion in export-oriented manufacturing. Trade and Logistics: El Niño-linked flooding has affected about 4,200 families in Paraguay, with rising Paraná waters also threatening a key commercial waterway.

AI Investment: Paraguay joined the US-led Pax Silica pact, positioning its hydropower and critical minerals to support AI infrastructure. The move builds on major data-center plans: HIVE says it has invested more than $250 million in Paraguayan sites, while Crusoe and Araico plan a 106 MW AI facility near Itaipú, with room to expand. Financial Oversight: The central bank faces calls to resign over its supervision of politically connected ueno bank, a dispute testing confidence in the regulator as Paraguay courts foreign capital. Ueno says it is cooperating, and the probe has not established wrongdoing. Manufacturing: Maquila exports topped US$1.14 billion in 2026, as the export-oriented manufacturing sector expanded.

Investment: HIVE Digital says it has invested more than $250 million in Paraguay’s hydro-powered data centers, with 300 MW operating and expansion planned. Separately, Crusoe and local developer Araico plan an AI computing facility near Itaipú, targeting an initial launch in 2027 and potential capacity of 280 MW. Financial Oversight: The central bank faces calls to resign over its supervision of politically connected ueno bank, testing confidence in the regulator and Paraguay’s reputation with foreign investors. The bank says its review follows legal procedures; ueno says it is cooperating. Manufacturing: Maquila exports rose 25% to $1.148 billion in the first nine months of 2026, with the sector employing 36,382 people. Trade and Capital: Treasury Secretary Scott Bessent and President Santiago Peña discussed closer economic ties and secure critical-minerals supply chains. At a recent Asunción investment forum, private-equity specialists also pointed to direct investment in local companies as a key route for capital in a market with a small stock exchange.

U.S. Partnership: Treasury Secretary Scott Bessent met President Santiago Peña to discuss closer economic ties and secure critical-mineral supply chains. Data-Center Investment: HIVE has invested more than $250 million in hydro-powered Paraguay data centers, with 300 MW operating and plans to expand to 400 MW. Crusoe and local developer Araico separately plan an AI facility near Itaipú, targeting a 2027 launch. Banking Oversight: Calls are growing for central bank leaders to resign over supervision of politically connected ueno bank. The bank says the preliminary probe is not a finding of wrongdoing; it reports 3 million customers and manages up to $850 million in public funds. Manufacturing: Maquila exports rose 25% to $1.148 billion in the first nine months of 2026, while the sector employed 36,382 people. Growth Outlook: ECLAC forecasts Paraguay’s economy will expand 4.5% in 2026 and 4.0% in 2027.

AI Investment: Crusoe and Paraguay’s Araico plan an AI computing facility powered by Itaipú hydroelectricity, with an initial deployment targeted for mid-2027 and capacity that could scale to 106 MW, with longer-term expansion options. Manufacturing: Maquila exports reached US$1.148 billion in the first nine months of 2026, up 25% year over year; the sector reported 36,382 jobs, with Mercosur taking 74% of shipments. Financial Sector: Paraguay’s Central Bank faces mounting pressure over doubts about the solvency of some lenders. Trade: A Paraguayan business delegation is in Italy to build commercial links, with opportunities identified in agri-food, wine and tourism. Paraguay is also preparing five international livestock audits to secure and expand meat exports. Agriculture: The country’s coffee market has surpassed US$59 million as local growers revive production.

Trade and Investment: A Paraguayan business mission in Italy is seeking partners and market access, with agri-food, wine and tourism in focus. Organizers say fresh EU-Mercosur prospects add momentum. Financial Oversight: Pressure is mounting on Paraguay’s Central Bank over doubts about some lenders’ solvency. Meat Exports: Paraguay is preparing five international livestock audits to secure and expand export markets. Agriculture: The coffee market has topped US$59 million as local growers revive production. Regional Logistics: Brazil is advancing transport links for agricultural exports, including the Bioceanic Corridor through Paraguay, which could help lower freight costs and improve access to Pacific ports. Air Connectivity: Brazil’s GOL plans to suspend flights between Asunción and Rio de Janeiro, reducing a key link for business and travel.

Regional Logistics: Brazil is advancing rail and multimodal links to cut farm-export costs, including the Bioceanic Corridor through Paraguay to Pacific ports. Separately, two new tugs will carry iron ore on the Paraguay-Paraná waterway, strengthening a key regional freight route. Financial Stability: Pressure is mounting on Paraguay’s Central Bank over concerns about some lenders’ solvency, though details have not been reported. Meat Exports: Paraguay is preparing for five international livestock audits aimed at securing and expanding market access. Global beef exports are forecast to remain nearly flat in 2027, while Paraguay ranks among the top 10 exporters, each of the six smaller players accounting for less than 5% of global shipments. Local Industry: Paraguay’s coffee market has topped US$59 million as domestic growers revive production. Air Links: GOL is set to suspend flights between Asunción and Rio de Janeiro, a setback for business and travel connections.