Hive Digital is reengineering its business model around one central fact: the cheapest, cleanest electricity on the planet may now be found in Paraguay. The company’s expansion into the country marks one of the most significant energy-driven repositionings in the digital infrastructure sector.

Once known primarily as a Bitcoin miner, Hive is now pivoting toward high-performance computing (HPC) and artificial intelligence hosting. Its new facility in Paraguay—acquired from Bitfarms for roughly USD 85 million—anchors that transition. The site is powered almost entirely by renewable hydroelectric energy from the Itaipu Dam, giving Hive a structural cost advantage at a moment when global compute growth is constrained by rising electricity prices and supply limitations.

Hydropower’s abundance and stability have made Paraguay uniquely suited to energy-intensive industries. What was once surplus electricity sold to Brazil is now being redirected to data centers, fertiliser plants, and hydrogen projects. For Hive, this represents more than opportunistic arbitrage; it is an ESG-aligned strategy to build a carbon-neutral computing base capable of supporting next-generation AI workloads.

Company executives describe the Paraguay investment as foundational—a long-term hedge against the volatility of Bitcoin and a gateway into the rapidly expanding AI compute market. Hive aims to use its low-cost Paraguayan power footprint to reach a USD 100 million annual run rate from HPC and AI services, scaling with new GPU clusters using Nvidia’s H100 and forthcoming Blackwell processors.

Paraguay’s policy environment reinforces this momentum. Through free-trade zones and preferential energy pricing, the government is encouraging firms to locate industrial and digital operations close to the hydroelectric source. Hive’s move exemplifies how foreign capital is beginning to treat Paraguay not as an energy exporter but as an energy platform—a nation where clean power is converted directly into digital and industrial productivity.

In practical terms, Hive’s bet links ESG imperatives with hard economics. The energy transition, once a cost burden, becomes a profit center. If the model succeeds, Paraguay could emerge as a quiet but decisive player in the global compute economy—where the currency is not Bitcoin, but renewable megawatts.