Itaipu currently has an installed capacity of 14,000 megawatts (MW).

A Canadian cryptocurrency‐mining firm, Hive Digital, launched a data center in Yguazú, Paraguay, in April. That facility is being expanded, and another one in Valenzuela is under construction. Both will consume significant electricity. Because of this rising demand, there’s talk of installing two new turbines at Itaipu in the coming years to supply power to Paraguay. 

Data centers are multiplying across Paraguay—not only Hive Digital. The U.S. also shows interest in Paraguay’s energy, with Secretary of State Marco Rubio expressing interest in using Paraguay’s Itaipu surplus to power AI data centers. 

Globally, demand for electricity by data centers is projected to double by 2030, consuming as much as Japan currently does.In Paraguay’s case, local estimates suggest that by 2035, the energy demand could use up all the power Itaipu produces.In 2024, Paraguay consumed 31% of Itaipu’s output, while Brazil consumed 69%. The binational treaty gives each country 50%, but Paraguay sells its surplus to Brazil under existing arrangements.

New turbines: possibility, constraints, and alternatives

Itaipu considers building two new turbines (each 700 MW) to increase capacity. But adding two units doesn’t guarantee a straight 10% boost: modern upgrades and efficiency improvements might yield more output without linear scaling. Itaipu says it has no active technical, social, or environmental studies underway for adding those turbines, and no schedule for negotiations. Yet, the Brazilian director‐general, Enio Verri, has publicly stated that turbine expansion is inevitable.The high capital cost is a major barrier. Funding would have to come via development banks (World Bank or Brazil’s BNDES) with Paraguayan agreement. As an alternate approach, Itaipu is exploring “repowering” existing turbine units—upgrading them to increase output without new construction or more water usage. A consulting firm has been hired to assess whether productivity can be improved under the current infrastructure.