Paraguay Cuts Bitcoin Miners' Cheap Power for AI by 2027

Paraguay's state utility will stop selling discounted power to bitcoin miners after 2027, redirecting that capacity to a new AI data campus instead. For everyday crypto users, this matters because it hints at where global mining activity and network security costs could head next.

What actually happened

Paraguay's utility supplies power to miners representing 4% of global bitcoin mining capacity, charging $44 (USD) per megawatt-hour, according to CoinDesk. Those contracts bring in $350 million (USD) annually, and the utility confirms they end on 31 December 2027, with no renewal planned. Separately, it signed a 15-year power agreement with an AI data campus backed by Founders Fund, a venture capital firm. The report does not reveal the utility's name, the campus location, its power capacity, or pricing terms for the AI contract.

How we got here

Paraguay became a magnet for bitcoin miners thanks to some of the world's cheapest electricity, enough to anchor 4% of global hash rate. That same appeal now draws AI companies racing to lock down power for data centers and training hardware. Founders Fund's new 15-year deal shows how AI infrastructure spending is starting to outbid crypto mining for long-term energy contracts. Paraguay choosing a multi-year AI commitment over renewing shorter mining deals signals a broader shift in who gets priority access to cheap power worldwide.

Why this matters for you

If you hold or use bitcoin, this matters because miners losing access to Paraguay's rates may relocate operations, which can shift where hash rate concentrates globally. That migration could raise mining costs temporarily and affect network security assumptions tied to geographic distribution. For bonuz wallet users, it is a reminder that bitcoin's infrastructure sits on real-world energy deals, not just code. Builders watching AI hardware, including devices like AR glasses, should note that power contracts are becoming a competitive edge in securing compute, a dynamic that could echo in future consumer hardware deals too.

The bigger question

Paraguay's utility chose a 15-year AI power deal over renewing bitcoin mining contracts worth $350 million a year. If other low-cost power regions follow that pattern, will global bitcoin mining concentrate into fewer countries, and could that quietly reshape network security assumptions that everyday wallet holders depend on, whether or not they ever think about where the electricity comes from?

What to watch

Mark 31 December 2027, when Paraguay's bitcoin mining power contracts officially lapse. No start date has been disclosed for the 15-year Founders Fund-backed AI campus deal. Expect more details on the utility's identity, the campus's location, and its power capacity as reporting continues. bonuz.market will keep tracking how this energy competition affects AI and crypto hardware, including the chips and components that could eventually power smart glasses.