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Paraguay’s Tech Ambitions: Aiming for South America’s Silicon Valley

October 12, 2025
in World
Reading Time: 4 min

Paraguay is setting its sights on becoming the “Silicon Valley of South America.” Gabriela Cibils, a Paraguayan tech entrepreneur, is at the forefront of this ambitious goal. Having gained experience working in Silicon Valley, she has returned to her home country with a vision to develop a robust tech sector that will put Paraguay on the global map.

Gabriela Cibils Paraguayan tech boss Gabriela Cibils smiles at the cameraGabriela Cibils
Gabriela Cibils wants to help Paraguay attract big tech from the US and elsewhere

Paraguay’s unique advantage lies in its vast supply of cheap, green hydroelectric power. The nation generates 100% of its electricity from hydroelectric sources, primarily from the massive Itaipu Dam, one of the world’s largest. This abundant and cost-effective energy makes Paraguay an attractive location for energy-intensive industries like AI data centers.

AFP via Getty Images Water gushing out of the giant Itaipu Dam on the Paraná River between Paraguay and BrazilAFP via Getty Images
The giant Itaipu Dam produces 90% of Paraguay’s electricity needs

The Paraguayan government is actively pursuing international tech companies, including those in artificial intelligence, by highlighting the nation’s clean energy resources, economic stability, and a young, dynamic population. President Santiago Peña has been engaging with tech leaders in California to encourage investment.

A key initiative is the development of a new digital park near Asunción’s airport, planned to include a university focused on technology. This project, supported by government investment and private sector collaboration, aims to create a thriving tech ecosystem.

Furthermore, efforts are underway to train the workforce, with organizations like the Paraguayan Chamber of the Software Industry focusing on developing software engineers and programmers. Initiatives like “Girls Code” are also working to bridge the gender gap in technology by providing training and mentorship to young women.

Despite facing challenges such as bureaucracy, the drive and optimism within Paraguay’s tech community are palpable. With its strategic advantages and a forward-thinking approach, Paraguay is positioning itself as a potential powerhouse in South America’s burgeoning tech landscape.


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