Paraguay's Bitcoin miners now have a firm expiration date. State electricity utility ANDE has said that special power contracts for intensive users, including crypto mining operations, will end on December 31, 2027, with no extensions planned under current regulations.

At the same time, the utility is signing 15-year agreements with AI data centers, marking a clear redirection of the country's hydropower advantage.

Miners Out, AI In

The affected contracts cover operators that collectively draw 943.8 MW from Paraguay's surplus hydropower. That electricity flows from the Itaipú and Yacyretá dams — binational plants operated jointly with Brazil and Argentina, with Itaipú among the world's largest hydroelectric power stations. Paraguay's domestic demand takes only a fraction of that output, and the resulting surplus has made eastern Paraguay one of the most attractive mining destinations in the world.

The government is now steering that advantage toward artificial intelligence and high-performance computing. Data centers in those sectors are being offered 15-year agreements priced at around $49/MWh. The 15-year horizon reflects the kind of firm, long-duration power supply that large AI data center projects typically secure before committing to a build-out.

The most prominent example involves Kuntur, a company linked to Araico and to the planned $12 billion Iguazú AI City project. Kuntur has secured a 15-year contract for up to 286 MW to power an AI data campus. The supply will not arrive all at once: the deal ramps up gradually, beginning at 6 MW in December 2026.

HIVE Has the Most to Lose

No publicly listed miner is more exposed to the change than HIVE Digital Technologies. The company's Paraguayan sites house roughly 77 percent of its operating mining capacity, according to CoinDesk, with research findings placing the share in a range of about 77–80 percent.

HIVE operates two facilities in the country: its Yguazú site, at roughly 200 MW, and its Valenzuela site, at about 100 MW. Those locations have powered much of the company's recent hashrate growth — growth that now rests on power contracts with a fixed end date and no renewal path under the current rules.

HIVE is not alone in feeling the squeeze. The number of legal mining operators in Paraguay has already fallen from 71 to 41 following strict enforcement against illegal grid connections. Costs have climbed as well: tariffs for crypto mining have risen to around $30/MWh, roughly double earlier levels, and operators now face upfront deposit requirements on top of that.

Why Paraguay Is Pivoting

The motivation, as the available findings frame it, comes down to what the government wants in exchange for its electricity. Officials appear to favor projects that create more jobs and commit to longer time horizons. An AI data campus tied to a $12 billion development pitches something different: a bigger economic footprint and a longer relationship.

Money is not vanishing from ANDE's side of the ledger, either. The utility is expected to keep generating hundreds of millions of dollars annually from intensive users despite the shift.

What the Transition Means

For HIVE shareholders, the central question is what happens to roughly three-quarters of the company's operating capacity after December 31, 2027. The contrast in commercial terms is stark: miners are paying around $30/MWh on contracts set to lapse, while AI operators are being offered around $49/MWh on 15-year deals.

There is also a timing gap worth watching. Kuntur's AI campus begins at just 6 MW in December 2026 and ramps toward a maximum of 286 MW, while the miners' 943.8 MW of contracted load faces the 2027 cutoff. That gap raises an open question about how much surplus power will sit idle — or get reallocated — during the transition.

For now, the signals to track are fairly concrete: any HIVE disclosures on contingency plans, any regulatory changes that reopen extension talks, and further long-term AI contracts from ANDE.

Disclosure: The original article was edited by John Chen.