HIVE to build hydroelectric data centre in Paraguay

Author: Simon Rowley

HIVE Digital Technologies, a leading digital asset miner and ‘green’ focused data centre builder and operator, has announced plans to construct a 100 megawatt digital asset mining operation in Paraguay.

Frank Holmes, HIVE’s Executive Chairman, states, “We are thrilled to announce our plan for a 100 MW project in Paraguay, utilising green and clean energy sourced from the Itaipu hydroelectric dam. This potential opportunity is expected to add up to an additional 6.5 Exahash per second (EH/s) to our Bitcoin mining operations, increasing our global EH/s to 12.1 EH/s. This represents a significant milestone in our diversified growth strategy and supports our commitment to expanding our global footprint with data centre operations in Canada, Sweden, Iceland and now Paraguay. We are confident that this venture can deliver healthy returns and drive long-term value, fostering economic growth and innovation in the region.”

Stability in government fiscal policies, such as energy pricing and taxation, will be a key factor in HIVE’s future expansion considerations relating to continued growth in Paraguay. Infrastructure projects such as data centres require significant foreign direct investment and a large scale project, such as a 100 MW data centre, is expected to generate over $100 million (£77.3m) of stable revenue for the Government’s utility company over the next three years.

As a Canadian public company, HIVE remains committed to full transparency and community engagement, creating local jobs and providing a stable income stream that benefits the national economy. By hiring locally, the company aims to contribute to regional economic growth, providing meaningful employment opportunities and fostering education and skill development.

In Paraguay, HIVE will offer its experience and expertise in grid balancing and demand response to support continued industrial development, while monetising surplus or under-monetised power assets. Additionally, as the company’s energy bills will be paid in US dollars, its operations in Paraguay offer a unique opportunity for the government by providing stable monthly US dollar income, acting as a strategic currency hedge, and ensuring financial stability in an increasingly volatile global currency market. In 2023, electricity exports constituted approximately 13.2% of Paraguay’s total exports.

HIVE says that it is proud to be at the forefront of sustainable and ethical Bitcoin mining practices. By leveraging renewable hydroelectric power, the company minimises its environmental footprint while contributing to the global transition toward greener energy solutions. This commitment to sustainability benefits the environment and aligns with growing consumer demand for eco-friendly business practices.

Executive Chairman Frank Holmes, Chief Operating Officer Luke Rossy, Hive Sweden Country President Johanna Thornblad, and General Legal Counsel Gabriel Ibghy were on the initial scoping trip to Paraguay. Frank Holmes added that both Johanna and Gabriel speak Spanish and together have experience navigating cultural and business landscapes in Latin America.

Gabriel Ibghy says, “We have made significant progress in identifying the data centre site and securing construction and power supply contracts. The transaction is subject to final agreements, due diligence, board approval, and regulatory approvals. We will announce further details soon.”