Paraguay continues to take concrete steps to position itself as a competitive destination for large-scale digital and energy infrastructure investments.
Through Decree No. 5306/2026, the Executive Branch adopted as public policy the development of artificial intelligence, cloud computing and data center industries, establishing a special electricity tariff with a term of up to 15 years.
This level of predictability — USD-denominated tariffs, long-term contracts and objective adjustment criteria — is particularly relevant for capital-intensive projects with long investment horizons.
This framework was recently expanded and strengthened by Decree No. 5307/2026, which incorporates so-called “Power to X” (Energy to X) initiatives into the convergent industries policy. These include, among others, activities related to the production of green hydrogen, ammonia, methanol, synthetic fuels, synthetic kerosene and other energy vectors and raw materials produced using renewable electricity.
The decree creates a specific electricity consumption group at very high voltage, establishes USD-denominated tariffs with a term of up to 15 years, appoints the Ministry of Industry and Commerce as the competent authority, and requires the submission of development and productive linkage plans aimed at maximizing local value creation, technology transfer and talent development.
Taken together, Decrees 5306 and 5307 send a clear signal to the market:
Paraguay is beginning to use its energy advantage not only as a competitive input, but as an active industrial policy tool to attract high value-added investments, both in digital infrastructure and in new energy industries.
For investors and operators, attention will now focus on effective implementation, institutional coordination and the consistency of this framework with other key regulatory policies.
At FERRERE, we continue to closely monitor these initiatives and their impact on data center, cloud, AI and advanced energy projects in Paraguay and across the region.