Paraguay Builds Its Tech Sector with Focus on Renewable Energy and Talent

Paraguay is actively working to establish itself as a major technology hub in South America, inspired by countries like the US and the region’s own tech developments. Gabriela Cibils, a Silicon Valley veteran, returned to Paraguay to contribute to this vision by combining her experience with local talent. Paraguay offers a unique advantage with its abundant, cheap, and renewable hydroelectric energy, primarily generated by the Itaipu Dam, which supplies 90% of the country’s electricity and allows for some of the lowest electricity prices in South America. This energy surplus is attractive to global tech companies, especially those needing steady power for energy-intensive operations like AI data centers. The government, led by President Santiago Peña and supported by Minister of Technology Gustavo Villate, is investing in infrastructure such as a new digital park near Asunción, designed to foster innovation and attract international investments. Paraguay’s young population, with an average age of 27, is another asset, and efforts are underway to train a skilled tech workforce, including initiatives to involve more women in technology through programs like Girls Code. Although challenges like bureaucratic hurdles remain, Paraguay’s combination of renewable energy, strategic investments, and human capital positions it as a promising emerging tech player in Latin America.