Paraguay Aims to Become South America’s Next Silicon Valley

Paraguay is taking bold steps to transform itself into the “Silicon Valley of South America.” Leading this vision is Gabriela Cibils, a tech entrepreneur who spent years in California’s startup ecosystem before returning home to help shape Paraguay’s digital future.

Cibils, now a partner at Cibersons, is working with the government and investors to build a strong local tech ecosystem. What gives Paraguay an edge is its abundance of cheap, green hydroelectric power, making it an attractive hub for energy-intensive industries like artificial intelligence and data centers. The Itaipu Dam, one of the world’s largest hydroelectric plants, generates 90% of the nation’s electricity and also supplies power to Brazil.

The government, led by President Santiago Peña and Technology Minister Gustavo Villate, is promoting Paraguay’s renewable energy, low taxes, and young workforce. Plans are underway to develop a $20 million digital park near Asunción Airport. This park will host both private firms and the new University of Technology, created in partnership with Taiwan.

To build the necessary talent pipeline, Vanessa Cañete of the Paraguayan Chamber of Software Industry is leading initiatives to train more young engineers. Her non-profit, Girls Code, has already taught over 1,000 women and girls programming and robotics skills.

Despite challenges like bureaucracy and limited foreign investment, Cibils believes Paraguay’s mix of innovation, energy, and youthful talent could soon make it a regional tech powerhouse. “If we leverage our advantages and keep innovating, Paraguay can be a superpower,” she says confidently.