PARAGUAY · GEOPOLITICS
Key Facts
- —What is happening On Friday, 23 October, Paraguay became the 26th country to sign the US-led Pax Silica declaration, a pact to build AI and chip supply chains among trusted partners.
- —Why it matters Washington and Asunción pledged to use Paraguay’s hydropower and critical minerals for AI infrastructure, tying a small ally to the US effort to reduce dependence on China.
- —The numbers Paraguay is signatory number 26. A separate 15-year power contract signed on Thursday, 22 October covers up to 286 megawatts for an AI data centre at US$48.91 to US$56.39 per megawatt hour.
- —Who is who Foreign Minister Rubén Ramírez Lezcano signed for Paraguay, with US Under Secretary of State for Economic Affairs Jacob Helberg. President Santiago Peña leads Paraguay’s conservative government and says he is close to the White House.
- —What to watch The first 6 megawatts of data centre power due on 1 December, and whether Washington names projects, money or companies under the declaration.
- —Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 36.0 points (October 2026 edition).
- —What it means for you US investors, chip buyers and policymakers gain a new Latin American partner for AI power and minerals, but no project, price or US-listed company has been named yet.
Paraguay has joined the Pax Silica alliance, the Trump administration’s plan to secure artificial intelligence supply chains. Washington says it wants Paraguay’s hydropower and critical minerals for AI infrastructure.
Paraguay became the 26th signatory of the Pax Silica declaration on Friday, 23 October, at the US State Department in Washington. The United States and Paraguay pledged to use Paraguay’s critical minerals and hydropower for AI infrastructure.
Pax Silica is the Trump administration’s plan to secure AI supply chains and reduce dependence on China. It matters to US readers because it widens Washington’s circle of partners for chips, minerals and power.
In Plain English
- Pax Silica: a US-led declaration by countries that want secure supplies of chips, minerals, energy and data centres for AI.
- Critical minerals: metals such as lithium and uranium used in batteries, chips and defence equipment.
- Hydropower: electricity from river dams, which Paraguay has in large amounts from the Itaipú dam and others.
- Data centre: a warehouse of computers that train and run AI systems and use huge amounts of power.
What Paraguay Signed on Friday
Foreign Minister Rubén Ramírez Lezcano signed for Paraguay, alongside Jacob Helberg, the State Department’s under secretary for economic affairs. The State Department described the signing as the start of Paraguay’s participation, ABC Color, Última Hora and Infobae reported.
The State Department said both countries reaffirmed their commitment to use Paraguay’s critical minerals and hydropower for “superintelligence infrastructure in the Americas”. Infobae noted that the release named no projects, deadlines, investments or companies.
President Santiago Peña, who leads Paraguay’s conservative government, announced the move on X and credited his Washington trip. He wrote that Paraguay is no longer a consumer of technology but a producer.
What the Pax Silica Pact Says
The Trump administration launched Pax Silica in December 2025 to shield chip and critical-mineral supply chains, Última Hora reported. Latin American signatories include Argentina, Chile, Costa Rica, El Salvador and Panama, it said.
The declaration’s text, published in Spanish by ABC Color, speaks of investment security, trusted networks, fibre-optic cables and data centres. It also warns against overcapacity and unfair dumping; see reports on Argentina and Chile joining and on Panama’s chip-tracking pilot.
Its wording is a statement of intent rather than a treaty. It says the signatories “intend” to strengthen cooperation, and the sources reviewed describe no binding duties or penalties.
Why Paraguay’s Power and Minerals Matter
Paraguay’s electricity comes largely from dams. ANDE president Miguel Báez Reyes named the Itaipú, Yacyretá and Acaray plants, and the first two are shared with Brazil and Argentina.
In February, Paraguay and the United States signed a memorandum to deepen cooperation on secure critical-minerals supply, EFE reported. The State Department release did not say which minerals Paraguay would supply, Infobae noted.
Peña says the pact brings more investment and jobs, and Paraguay also belongs to the Shield of the Americas, Washington’s anti-narcotics coalition. Peña describes himself as close to the White House on Israel and Taiwan, EFE noted.
The Washington Week Behind the Signing
Peña travelled to Washington from Wednesday, 21 October to Friday, 23 October, Revista Plus reported. On Thursday he met Treasury Secretary Scott Bessent, who posted that both sides reaffirmed work on critical minerals (earlier report).
Peña said US firms show growing interest in technology, logistics, manufacturing, trade and mining. It followed a visit by Deputy Secretary of State Christopher Landau with a business delegation, as covered earlier.
Peña also announced a meeting with CIA Director John Ratcliffe before leaving, La Nación reported. The sources reviewed do not confirm that the meeting took place.
The Data Centre That Needs the Power
On Thursday, 22 October, power utility ANDE signed a 15-year contract with Kuntur, a company tied to Araico, ABC Color reported. It covers up to 286 megawatts for an AI data centre at Yguazú, as set out in a separate report.
Supply starts on 1 December 2026 with 6 megawatts, rising to 146 in April 2028 and 286 in April 2029. That ceiling equals the Acaray plant’s capacity plus 66 megawatts, and ANDE president Báez said the contract excludes crypto mining.
The tariff is US$56.39 per megawatt hour at 23 kilovolts and US$48.91 at 220 kilovolts. It rises yearly with US inflation, with a 2.5% floor, ABC Color said.
Última Hora reports the deal lets US firm Crusoe Energy build its first Latin American data centre with Araico. Báez would not explain how Crusoe fits in, ABC Color reported, and earlier coverage is in the first report on the hub.
What It Means for US Readers
For US policymakers, Paraguay adds a friendly partner to a bloc aimed at securing AI chips, minerals and power outside China’s reach. For US technology firms, it offers hydropower, with a first contract priced at roughly US$49 to US$56 per megawatt hour.
No US-listed company is named in the State Department release, so there is no direct effect on US stocks. Guides to Paraguay’s geopolitics and the Paraguay’s politics explain who holds power, and the Asunción city page helps with moving there.
What Is Not Known
The State Department release could not be opened, so its wording comes from ABC Color, Última Hora, Infobae and La Tribuna. Those outlets agree on the signatories, the date and the stated aim.
No source gives the value of any investment, a project list or the minerals Paraguay would supply. It is unclear how Crusoe is linked to Araico, or what Brazil thinks of Itaipú power use.
What Comes Next
The first 6 megawatts for the data centre are due on 1 December 2026, according to ANDE. The State Department gave no date for the next Pax Silica meeting, Infobae noted.
Signing the declaration does not itself fund a project or bind Paraguay to a purchase. Any project would need separate contracts and approvals.
Frequently Asked Questions
What is Pax Silica?
Pax Silica is a US-led declaration, launched in December 2025, to secure AI supply chains from minerals to data centres. Paraguay is the 26th signatory.
When did Paraguay join Pax Silica?
Paraguay signed on Friday, 23 October 2026, at a ceremony in the State Department in Washington. Foreign Minister Rubén Ramírez Lezcano signed with US official Jacob Helberg.
Why does the United States want Paraguay in the pact?
Washington cites Paraguay’s critical minerals and hydropower for AI infrastructure. Paraguay also has a friendly government under President Santiago Peña, who says he is close to the White House.
Does the pact commit Paraguay to build a data centre?
No. The declaration states intentions and does not name projects or investments. A separate 15-year ANDE power contract covers up to 286 megawatts for one AI data centre.
What does the data centre pay for electricity?
ANDE says US$56.39 per megawatt hour at 23 kilovolts and US$48.91 at 220 kilovolts. Prices rise each year with US inflation, with a 2.5% minimum.
Sources: ABC Color, 23 October; Última Hora, 23 October; Infobae, 23 October; La Tribuna, 23 October; Infobae (EFE), 22 October; Revista Plus, 22 October; La Nación, 22 October; Última Hora, ANDE contract, 23 October; ABC Color, ANDE tariff, 23 October (all accessed 24 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief