Paraguay's state-owned power company ANDE has signed a 15-year power supply agreement with Kuntur S.A. for an infrastructure project that requires up to 286 megawatts ( MW ) of power.

HIVE Digital Technologies's infrastructure of about 300 megawatts in Paraguay is facing the issue that its power contracts will expire on December 31, 2027.

With the AI data center securing longer-term power commitments, competition for hydropower resources in Paraguay is intensifying.

Paraguay's electricity market is becoming increasingly competitive, and this has begun to highlight a growing problem faced by mining companies. The country's mining sector is expected to generate approximately $350 million in electricity revenue for the state-owned power company ANDE this year, making the competition for hydropower resources particularly intense.

While AI infrastructure developers are striving for long-term power supply agreements, the existing cryptocurrency mining operations face a significant contract expiration in 2027.

This contrast became even more apparent in October 2026. At that time, Paraguay's state-owned power company ANDE signed a 15-year power supply agreement with Kuntur S.A. for an infrastructure project that required up to 286 megawatts of power. For Bitcoin mining companies operating in the country, this timing raised an uneasy question: what will happen when the existing power supply agreement expires?

AI Data Center Signs Longer-Term Power Agreement

The Kuntur protocol provides a 15-year power supply, with plans to start supplying electricity from December 1, 2026, and an initial capacity of 6 megawatts.

The power supply capacity will be gradually increased and will reach a full scale of 286 megawatts in April 2029.

This is a rather considerable commitment. More importantly, it highlights that the AI data center is becoming a strong competitor in Paraguay's hydropower resources.

This arrangement contrasts with the existing power agreement of HIVE Digital Technologies, whose expiration date is much closer.

The 300-megawatt infrastructure of HIVE is facing a deadline in 2027.

HIVE operates infrastructure with a capacity of approximately 300 megawatts at two facilities in Paraguay: Yguaz has a capacity of 200 megawatts, and Valenzuela has a capacity of 100 megawatts.

According to its 2026 annual report, the power procurement agreements covering these two facilities will expire on December 31, 2027.

This is not a trivial contract detail. Whether operations can continue thereafter will depend on whether it is possible to renegotiate the existing agreement or to obtain alternative power supply arrangements under commercially acceptable terms.

Explanation of the situation for HIVE: With intensifying competition in the electricity sector, Paraguay's large-scale Bitcoin mining industry is facing uncertainties.

Paraguayan mining industry faces more intense competition

This situation does not automatically mean that Bitcoin mining companies will lose their power supply. However, the differences in contract durations do raise questions about future power availability and operating costs.

For the miners of BTC, obtaining affordable electricity remains key to maintaining operations. Meanwhile, AI infrastructure developers are showing their willingness to make longer-term power supply commitments.

Therefore, the next two years may become an important period for Paraguay's mining industry. The deadline of HIVE in December 2027 is gradually approaching, while Kuntur has already secured a 15-year agreement.

For this report, the more significant aspect is not just the expansion of the AI infrastructure, but whether existing mining operators can secure equally reliable power arrangements before their current contracts expire.