TREE NEWS update: Paraguay’s state utility ANDE said special electricity contracts for high-consumption users including cryptocurrency miners will terminate on Dec. 31, 2027, and will not be renewed under current rules. The contracts cover 943.8 MW drawn from Paraguay’s surplus hydropower. The move is expected to significantly affect HIVE Digital Technologies, which has about 77% to 80% of its active mining capacity in Paraguay. ANDE is meanwhile signing 15-year power supply agreements with AI data centers.
Paraguay to End Special Power Contracts for Crypto Miners by End-2027
AI take
Paraguay is effectively reallocating its hydropower surplus from crypto mining toward AI data centers, and the 2027 deadline gives miners a defined runway rather than an abrupt cut. The concentration risk is stark: HIVE Digital's reliance on Paraguay means its exposure is a single-jurisdiction question, not a marginal cost issue. The open question is whether miners can renegotiate terms or relocate capacity before the contracts lapse, and whether other hydro-rich jurisdictions follow Paraguay's lead in prioritizing AI load.
Generated by AI for reference only.
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