Hive Digital Technologies has activated its first GPU cloud cluster in Asunción, Paraguay, using hydroelectric power from the Itaipú Dam. The company announced the launch in mid‑March 2026, calling it a major step in its shift from pure Bitcoin mining toward AI and high‑performance computing (HPC).
The new cluster sits inside a Tier III data center run by Paraguay’s largest telecom operator. It is built to handle large language model (LLM) training, inference, and other compute‑heavy research workloads for customers abroad.
How the Paraguay GPU Cluster Is Set Up
Hive’s Asunción deployment uses its BUZZ AI Cloud platform, which rents out GPU power to enterprises, universities, and research labs. The company says this is the first live GPU cluster in its phased rollout of AI and HPC services in Paraguay.
The facility taps into 300 megawatts of renewable hydro power that Hive already has operational in the country, with another 100 megawatts under development at its Yguazú site. That energy base originally supported Bitcoin mining but now also feeds cloud workloads over a nationwide fiber network.
According to Hive, running the cluster on Paraguay’s cheap hydroelectric power helps cut operating costs while keeping carbon emissions low. The company positions this setup as a way to offer lower‑cost AI compute compared to many North American data centers that rely partly on fossil fuels.
First Customer: Columbia University LLM Research
Hive’s first flagship client for the Paraguay cluster is a research team from Columbia University in New York. The group is using the BUZZ AI Cloud deployment in Asunción to train and run large language models remotely.
Hive says the early tests show low‑latency links between New York and Paraguay, helped by the telecom partner’s fiber backbone. The company frames this as a proof‑of‑concept that South America can host serious AI workloads for clients in North America and beyond.
Frank Holmes, Hive’s executive chairman, said the firm wants real‑world performance data before scaling its planned “AI factory.” He described this first GPU cluster as a beta test that will guide how quickly Hive adds more Tier III capacity.
Hive has spent years building hydro‑powered Bitcoin mining sites in Paraguay, Canada, and Sweden. It is targeting 35 exahash per second of Bitcoin mining capacity by 2026.
The Paraguay campus at Yguazú is on track for 400 megawatts of renewable data center capacity. That total depends on finishing the site’s latest 100‑megawatt expansion.
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