bitcoin
Paraguay AI deal displaces Bitcoin miners, power contracts expire 2027
A newly executed fifteen-year agreement has seen Paraguay's state utility commit to supplying energy for an AI campus backed by Founders Fund.
This development comes as contracts supplying electricity to four percent of the global Bitcoin mining operations, priced at $44 per megawatt-hour, are set to conclude on December 31, 2027, a deadline the national utility considers absolute.
These agreements, which power a significant portion of the world's Bitcoin mining sector, are nearing a significant expiration date. The energy supply arrangements, valued at $44 per megawatt-hour for a quarter of all Bitcoin miners, are scheduled to lapse on December 31, 2027.
Why it matters
This shift signals a major reallocation of energy resources away from crypto mining. The new AI deal suggests that high-demand computing is rapidly outcompeting established energy users like Bitcoin miners.
