HIVE Digital Technologies (TSX-V:HIVE, NASDAQ:HIVE, BVC:HIVECO) has announced plans to expand into Paraguay through a strategic joint venture with the country’s largest telecommunications operator.
The company said that as part of the partnership, HIVE will launch one of the first purpose-built BUZZ AI cloud platforms in Paraguay.
The platform will be based in Asunción and hosted in a Tier III data center operated by the telecom partner. It is intended to provide high-performance computing and artificial intelligence infrastructure for academic and research institutions, enterprises, financial services firms, and healthcare providers across Paraguay and the wider region.
The initial deployment is expected to begin in the first quarter of 2026 with an enterprise-grade GPU cluster designed to support AI training, inference, and data-intensive workloads.
The platform is planned to scale over time based on customer demand and capital availability, utilizing Paraguay’s renewable hydroelectric power, the partner’s national fiber network, and enterprise-grade data center operations.
HIVE already operates Tier I data centers and associated electrical substations in Paraguay, supported by access to hydroelectric energy. The company has positioned Bitcoin mining as a mechanism for developing foundational data center infrastructure that monetizes surplus electricity, which can later support higher-tier digital compute applications, including AI and high-performance computing in Tier III facilities.
"The launch of AI cloud infrastructure in Asunción represents an initial step toward enabling academia, research institutions, businesses, financial services, and healthcare organizations to access high-performance compute capacity locally,” HIVE ceo Aydin Kilic said in a statement.
“This initiative complements HIVE's existing Tier I data center operations in Paraguay, which currently utilize approximately 300 megawatts, and which, subject to market conditions and approvals, may expand by an additional 100 megawatts in 2026."
According to the company, its strategy in Paraguay follows a phased, multi-year approach to evolving energy-led infrastructure into scalable AI and data center capacity. HIVE noted that Tier III facilities require higher capital investment, and that beginning with Tier I infrastructure provides a structured pathway toward AI-ready environments.
The company highlighted Paraguay’s recent economic performance, stable government, and pro-investment policies as factors supporting long-term digital infrastructure development. HIVE also drew comparisons to infrastructure growth patterns observed in parts of Texas, where energy-intensive workloads preceded the expansion of advanced data center facilities.
"Paraguay has been an important operating geography for HIVE, where we have demonstrated how energy-led digital infrastructure can support long-term value creation,” HIVE executive chairman Frank Holmes said.
“We believe Paraguay's economic stability, supportive policy environment, and institutional relationships provide a constructive foundation for continued digital infrastructure development."
HIVE said continued investment in AI and high-performance computing infrastructure could contribute to downstream economic activity, including demand for technical and engineering roles over time.
The expansion also aligns with ongoing institutional engagement between Paraguay and the United States, including the signing of a Status of Forces Agreement in December 2025, the company added.
The BUZZ AI cloud platform is intended to support demand for accelerated computing across South America by offering AI infrastructure hosted in a Tier III environment and powered by renewable energy. Future expansion plans will depend on infrastructure development, customer demand, regulatory conditions, and capital availability.