Paraguay Bitcoin Miners Face 2027 Deadline as AI Demand Rises

The Ticking Clock for Paraguay’s Bitcoin Miners

Imagine running a massive facility that relies entirely on clean, low-cost power. Now imagine knowing your primary electricity contract ends on a fixed date with no guarantee of renewal.

That is the exact situation facing major Bitcoin miners in Paraguay right now. A significant shift in how the country allocates its energy is currently taking place.

Why Paraguay Became a Crypto Mining Hub

Paraguay produces massive amounts of green energy through its hydroelectric dams. For years, cryptocurrency mining firms established facilities there to utilize surplus electricity.

This setup became a major income generator for the state utility, ANDE (Administración Nacional de Electricidad). Mining operations generate approximately $350 million in annual electricity revenue for ANDE.

In total, crypto miners consume around 944 megawatts (MW) of power across the country. Historically, many of these operations secured flat rates near $44 per megawatt-hour (MWh).

AI Projects Enter the Energy Competition

While miners rely on special short-term agreements, artificial intelligence (AI) data centers are offering long-term financial commitments. Utility providers often prefer longer contracts because they offer predictable revenue for decades.

This contrast became clear in October 2026. State utility ANDE signed a 15-year electricity supply contract with Kuntur S.A. for a major AI infrastructure project.

The agreement supports a planned $12 billion AI city initiative. It secures up to 286 MW of power dedicated to AI data centers.

How the Kuntur AI Power Deal Works

• Initial power delivery begins on December 1, 2026, starting at 6 MW.
• Supply capacity will gradually ramp up over the following years.
• The project is scheduled to reach its full capacity of 286 MW by April 2029.

This 15-year agreement locks in a substantial share of Paraguay's hydroelectric output for AI workloads well into the future.

HIVE Digital Technologies Faces the 2027 Expiration

As AI developers secure long-term power, existing Bitcoin operations face approaching deadlines. HIVE Digital Technologies provides a clear example of this situation.

HIVE is one of the largest operators in the country, managing around 300 MW of power infrastructure across two main sites.

Breakdown of HIVE’s Facilities in Paraguay

• Yguazú Facility: Operates 200 MW of power capacity.
• Valenzuela Facility: Operates 100 MW of power capacity.

According to HIVE's 2026 annual report, the power purchase agreements for both facilities expire on December 31, 2027.

State utility ANDE currently plans to let all special cryptocurrency electricity contracts expire on that date.

What Happens Next for Crypto Miners?

To continue operating beyond December 31, 2027, miners like HIVE must renegotiate agreements or find replacement power on commercial terms.

If power costs rise significantly upon contract renewal, operational margins could be affected. Low-cost electricity remains essential for mining sustainability.

As a reminder, past performance of digital assets is not a guarantee of future results. Market participants can monitor real-time asset prices and market details on the Bitkub BTCBTC-2.09% Market.

The Global Power Competition Between AI and Crypto

This development illustrates a global trend where AI infrastructure and Bitcoin mining compete for the same energy supplies.

AI companies frequently secure multi-year institutional support that enables 15-year commitments. In contrast, crypto miners often operate on shorter contractual frameworks.

This difference leaves miners exposed to contract expirations when utilities reallocate energy to long-term clients.

Looking Ahead to December 2027

The upcoming deadline does not automatically mean miners will be cut off entirely. However, it forces mining companies to negotiate in a more competitive market.

Over the next two years, the central question for the industry is whether established miners can secure dependable energy terms before their current contracts end.