The Pulse
Crusoe Plans 106-MW AI Cloud Campus Near Itaipu
Crusoe and Paraguay’s Araico plan an AI cloud deployment near the Itaipu substation, with a path to 106 MW of IT capacity and possible expansion to about 280 MW. The companies target an initial launch in mid-2027, while questions about the
AI.info Team · Written with AI · fact-checked ·
“Crusoe was founded on a simple idea: build digital infrastructure where power is abundant, accessible and environmentally-aligned.”
Cully Cavness, co-founder, president and chief strategy officer of Crusoe
Crusoe announced on October 22 that it plans to build AI cloud infrastructure in Paraguay with local energy and infrastructure developer Araico. The companies’ proposed site sits beside the Itaipu substation, near the hydroelectric dam on the Paraguay-Brazil border. Crusoe describes the project as its first dedicated AI Cloud deployment in Latin America.
A mid-2027 launch, with room to grow
The initial deployment is planned to come online in mid-2027. Crusoe says the project could scale to 106 megawatts of IT capacity, with longer-term options to reach about 280 MW total. The 106-MW figure describes IT capacity; the company’s announcement does not give a construction budget, a customer list or a detailed rollout schedule.
The cloud service is intended to serve customers in the United States as well as demand in Latin America. Araico will lead local development and site infrastructure, while Crusoe says it will supply, manage and operate the physical computing equipment for Crusoe Cloud. The companies did not disclose how many servers or accelerators the initial phase would include.
The Itaipu link runs through Paraguay’s power system
Crusoe says the facility will draw on Itaipu’s renewable hydroelectric power. But its announcement does not explain the electricity supply contract or identify the utility that would deliver power to the site. The wording about a campus beside the substation describes its location; it does not establish that Crusoe or Araico will buy electricity directly from the dam.
Reporting published October 23 by ABC Color says Paraguay’s state-owned utility ANDE would supply Araico, with electricity coming from the Yguazú substation. The outlet notes that ANDE’s president did not respond to its questions about the agreement. The distinction matters: Itaipu generates the power, but the public reporting describes ANDE—not Crusoe—as the intermediary in the supply chain.
Price and contract terms are not settled publicly
ABC Color reports that Araico executive Alejandro Zuccolillo had described a proposed initial tariff of $45 per megawatt-hour in September. On October 23, Adolfo Villalba, general secretary of the ANDE workers’ union, told the outlet he understood the starting price to be $48 per MWh. Villalba also said the union had been told the agreement would run for 15 years; ABC Color reported that ANDE had not publicly confirmed those terms.
The public record therefore leaves basic commercial questions open even as the two companies announce a large capacity target. Crusoe has not disclosed the project’s cost, the price it would pay for power or whether the 106-MW buildout has secured a supply contract. For now, the firmest dates and figures are the planned mid-2027 start and a possible scale-up from the initial deployment to 106 MW of IT capacity, with a separate long-term option of about 280 MW total.