Paraguay eyes tech transformation as ‘Silicon Valley of South America’: Report

By Anadolu staff

ISTANBUL (AA) - Paraguay is setting its sights on becoming the “Silicon Valley of South America,” leveraging its vast supply of cheap, renewable energy and youthful population to attract global tech investors, according to a BBC report published on Sunday.

The report highlights the efforts of Gabriela Cibils, a Paraguayan entrepreneur and partner at global tech and investment firm Cibersons, who has returned home after nearly a decade in Silicon Valley to help build the country’s fledgling technology ecosystem.

“I saw firsthand the impact technology can have on your life,” Cibils told the BBC. “After being exposed to such a different world in Silicon Valley, it’s my responsibility to bring that mindset back and combine it with the talent I see in Paraguay.”

Paraguay, a landlocked country between Brazil and Argentina, hopes that its 100% hydroelectric grid will attract major international firms that are increasingly focused on the energy demands of artificial intelligence and data processing.

The BBC notes that the Itaipu Dam, one of the world’s largest hydroelectric plants, supplies about 90% of Paraguay’s electricity and 10% of Brazil’s. The country’s surplus power has made electricity prices the lowest in South America, positioning Paraguay as the world’s largest exporter of clean energy.

According to the report, the government is betting heavily on this advantage. President Santiago Pena has met with executives from Google and OpenAI during visits to California, pitching Paraguay as a future hub for data centers and tech operations.

Technology Minister Gustavo Villate said the administration is developing a new digital park near Asunción’s main airport, a $20 million government-backed project aimed at drawing private investment and fostering collaboration between universities, the private sector, and international firms.

The median age in Paraguay is 27, and the government hopes this demographic dividend will help supply a large, skilled tech workforce, the report says.