Paraguay, Taiwan announce ambitious AI hub plan for South America
by Mar Puig · UPIASUNCION, Paraguay, May 11 (UPI) -- Paraguayan President Santiago Peña announced an agreement with Taiwan to develop one of the world's largest artificial intelligence centers in Paraguay -- an initiative aimed at positioning the country as a regional hub for technological infrastructure and digital services.
The announcement came during the conclusion Sunday of Peña's official visit to Taiwan, where he held meetings with Taiwanese President William Lai, as well as business leaders and authorities linked to the technology sector.
"Between two giants, we are beginning the path to create the world's largest artificial intelligence hub: Taiwanese technology powered by Paraguayan energy," Peña said in a message shared on social media.
Peña said the project will be financed equally by the two governments and will combine Taiwan's technological capabilities with Paraguay's surplus hydroelectric energy, making use of the country's position as one of South America's leading exporters of clean energy.
He said the initiative aims to turn Paraguay into a regional center for development linked to artificial intelligence, data centers and high-capacity digital services.
"Paraguay joins the artificial intelligence race with sovereignty," Peña wrote on social media, where he described the agreement as "unprecedented."
The project includes creating an artificial intelligence and high-technology data cCenter aimed at providing technological services across the continent, Paraguayan Ambassador to Taiwan Darío Filártiga said in remarks to RCC Radio.
Filártiga said the proposal seeks to capitalize on "Paraguay's abundance of clean and renewable energy" to attract investments linked to digital infrastructure and artificial intelligence.
The official visit also produced advances in cooperation on cybersecurity, information technology infrastructure and technological training, in addition to agreements aimed at strengthening the private sector.
A delegation of about 40 Paraguayan business leaders participated in a binational forum alongside about 200 Taiwanese representatives. As a result, both countries signed a memorandum of understanding to create the Paraguay-Taiwan Chamber of Commerce, Industry and Culture.
The trip comes amid growing geopolitical competition between China and Taiwan to maintain diplomatic allies in Latin America.
Paraguay remains the only South American country that maintains official diplomatic relations with Taiwan, while Beijing increases international pressure to diplomatically isolate the island.
During an official ceremony in Taipei, Lai publicly thanked Paraguay for its support.
"Taiwan and Paraguay are partners firmly committed to the values of democracy, freedom and human rights," the Taiwanese president said.
Peña, meanwhile, reiterated Paraguay's support in the face of pressure from China.
"Paraguay deeply values this relationship and reaffirms its commitment to continue supporting Taiwan in a strategic alliance based on shared values," he said.
Bilateral relations have also strengthened in trade.
Official Paraguayan data show that Taiwan consolidated its position during 2025 as one of the main destinations for Paraguayan beef exports, with sales exceeding $288 million.
In addition, Taiwan recently authorized imports of Paraguayan poultry, completing what Filártiga described as the "protein trilogy," made up of beef, pork and poultry.
The Paraguayan government has not yet disclosed the exact location of the future technological complex or the expected timeline for the start of construction.