AI Demand Pushes Bitcoin Miners Out of Paraguay as Power Contracts Expire

Bitcoin miners Paraguay — Bitcoin miners in Paraguay are facing displacement as the nation’s state utility prioritizes power for a new artificial intelligence campus, letting lucrative mining contracts expire.

Contracts supplying power to about 4% of the global Bitcoin mining network at a rate of $44 per megawatt-hour are set to terminate on December 31, 2027. The state-owned utility, ANDE, has confirmed this date as final and is not planning to renew the agreements.

Instead, the utility has signed a new 15-year deal to provide electricity to a major AI data center campus backed by Peter Thiel’s Founders Fund. This shift highlights the growing competition for cheap, stable energy between the cryptocurrency mining and artificial intelligence industries.

The existing mining operations, which contribute an estimated $350 million annually to Paraguay’s economy, are now seeking alternative power sources or locations. The move underscores a broader trend where energy-hungry AI infrastructure is beginning to outbid and replace established Bitcoin mining facilities in key regions.