Crusoe and Araico announce AI project linked to Itaipu
Brazil and Paraguay each have rights to half of Itaipu’s output, but their actual use differs. As Paraguay’s surplus shrinks, new demand strengthens the case for renewables.
AI powered by Itaipu
U.S.-based Crusoe and Paraguayan developer Araico announced an AI infrastructure project next to Itaipu. Operations are expected to start in 2027, serving cloud customers in the United States and Latin America.
The announcement described it as one of the largest private investments in Paraguay’s history. No amount was disclosed.
How Itaipu’s power is shared
Itaipu is jointly administered by Brazil and Paraguay. The treaty gives each country rights to half of the electricity generated. In 2024, about 69% of Itaipu’s output went to Brazil and 31% to Paraguay.
Historically, Paraguay has sold to Brazil the part of its share it does not use. That surplus has been shrinking as local demand grows. New technology projects could put further pressure on the available supply.
A bilateral understanding provides for Paraguay to sell its unused share in the Brazilian market.
Why renewables matter
This is where renewable energy comes in. GDI Hub’s view is that growing local demand and new digital loads increase the need for clean power and the infrastructure to deliver it. The announced AI project will use Itaipu’s existing hydropower generation; it does not include a new power plant.
GDI Hub tracks opportunities and structures deals in renewable energy. Contact our team: https://gdihub.com.br/#contato
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Sources
Itaipu Treaty — Article XIII: https://www.itaipu.gov.br/sites/default/files/u123/Tratado.pdf
Crusoe — partnership announcement: https://www.crusoe.ai/resources/newsroom/crusoe-araico-hydroelectric-ai-infrastructure-partnership
Itaipu — 2024 Annual Report: https://www.itaipu.gov.br/wp-content/uploads/2025/06/Relatorio-Anual-ITAIPU-2024-Portugues.pdf
EPE — 20-year Statistical Yearbook of Electricity: https://www.epe.gov.br/sites-pt/publicacoes-dados-abertos/publicacoes/PublishingImages/Paginas/Forms/Publicaes/Anuario20anos.pdf
Brazil–Paraguay understanding on Itaipu: https://aplicacao.itamaraty.gov.br/ApiConcordia/Documento/download/32455