Paraguay plans to end special crypto power contracts by 2027

Paraguay will phase out its special electricity contracts for crypto miners by 2027, ending a regime that helped make the country a hub for bitcoin mining. The government is pivoting toward AI and other data-center power contracts, arguing those industries offer longer-term growth and more job creation than mining. The change matters because Paraguay’s state hydropower has been among the cheapest power sources for miners, and losing that status could push some operators to relocate or renegotiate. Watch for how existing mining contracts are unwound before the 2027 deadline and whether AI data-center deals materialize to absorb the freed capacity.