[CoinDesk] Bitcoin miners pay Paraguay $350 million a year, but AI is pushing them out

Bitcoin miners in Paraguay pay roughly $350 million annually for power under contracts set to expire on Dec. 31, 2027, a date the state utility has called final. The utility has signed a 15-year agreement to supply a Founders Fund-backed AI campus, signaling a shift toward AI data centers. The expiring contracts cover about 4% of global bitcoin mining capacity at $44 per megawatt-hour. The move matters because it reallocates cheap hydroelectric power from mining to AI compute, pressuring miners' operating costs. What to watch next is whether miners can renegotiate or relocate before the 2027 deadline and how the AI campus ramps up.