Paraguay’s Bitcoin miners now face a deadline. State electricity utility ANDE says special power contracts for intensive users, including crypto mining operations, will end on December 31, 2027. Current regulations provide for no extensions.
The same utility is signing 15-year agreements with AI data centers.
Miners out, AI in
The contracts cover operators that collectively draw 943.8 MW from Paraguay’s surplus hydropower. Electricity from the Itaipú and Yacyretá dams has helped make eastern Paraguay one of the world’s most attractive mining destinations.
The government is now redirecting that advantage. AI and high-performance computing data centers are being offered 15-year agreements at around $49/MWh.
The clearest example is Kuntur, a company linked to Araico and the planned $12 billion Iguazú AI City project. Kuntur secured a 15-year contract for up to 286 MW to power an AI data campus.
The electricity supply will be phased in. The deal starts at 6 MW in December 2026.
HIVE has the most to lose
HIVE Digital Technologies is the most exposed public miner. Its Paraguayan sites account for roughly 77 percent of its operating mining capacity, according to CoinDesk, while research estimates put the share at about 77-80%.
HIVE operates two facilities in the country: its Yguazú site is about 200 MW, and its Valenzuela site is about 100 MW.
Those sites have driven much of the company’s recent hashrate growth. That growth now depends on power contracts with a fixed end date and no renewal option under current rules.
HIVE is not the only operator affected. The number of legal mining operators in Paraguay has already fallen from 71 to 41, after strict enforcement against illegal grid connections.
Costs have also increased. Crypto-mining tariffs have risen to around $30/MWh, roughly twice their earlier level, and operators must also meet upfront deposit requirements.
Why Paraguay is pivoting
Available findings suggest the government’s motivation comes down to what it wants in return for its electricity. Officials appear to favor projects that create more jobs and make longer-term commitments.
An AI data campus associated with a $12 billion development offers a different proposition: a larger economic footprint and a longer relationship.
ANDE is not expected to lose revenue, either. The utility is expected to continue generating hundreds of millions of dollars annually from intensive users despite the shift.
What this means for miners and investors
For HIVE shareholders, the key question is what will happen to roughly three-quarters of the company’s operating capacity after December 31, 2027.
Pricing and contract terms differ. Miners pay around $30/MWh on contracts set to expire, while AI operators are being offered around $49/MWh under 15-year agreements.
The timing is also worth watching. Kuntur’s AI campus starts at just 6 MW in December 2026 and ramps up toward a maximum of 286 MW. Meanwhile, the miners’ 943.8 MW of contracted load faces a 2027 cutoff.
This leaves an open question: how much surplus power will sit idle or be reallocated during the transition?
For now, several indicators are worth tracking: HIVE disclosures about contingency plans, regulatory changes that could reopen extension talks, and further long-term AI contracts from ANDE.
