HIVE plans 400 MW hydro-powered campus in Paraguay with Phase 3 expansion

HIVE Digital Technologies is adding another 100 MW to its hydroelectric data center campus in Yguazú, Paraguay. Once the Phase 3 build is complete, the site’s total capacity would reach 400 MW, all of it drawn from the Itaipú Dam.

The company is targeting completion by Q3 2026. If it lands on schedule, the campus would become the largest hydro-powered facility in Paraguay.

From 200 MW to 400 MW in under two years

HIVE, which trades on both the TSX Venture Exchange and Nasdaq under the ticker HIVE, has been building out Yguazú in stages. Phase 1 went live in April 2025 at 200 MW.

Phase 2 followed in September 2025 and lifted the site to 300 MW. At that size, the campus currently produces approximately 8.5 BTC per day.

The company bought the Yguazú data center from Bitfarms in January 2025. Since then, HIVE has committed more than $400 million to its Paraguay operations.

That figure covers construction and taxes, with $130 million going toward construction costs alone.

The expansion feeds into a broader company target. HIVE aims to reach a global Bitcoin mining capacity of 35 exahashes per second (EH/s) by the end of 2026, up from 22 EH/s as of October 2025.

The AI factory waiting in the wings

Bitcoin is only half of the Paraguay plan. HIVE also wants to build out high-performance computing (HPC) and artificial intelligence infrastructure.

To that end, HIVE plans a dedicated AI factory powered by a new 100 MW substation. The facility is anticipated to come online in the second half of 2027.

The company has also set a goal of scaling its HPC and AI capabilities fivefold.

Why Paraguay, and why hydro

Paraguay’s appeal comes down to the Itaipú Dam, which supplies much of the country’s hydroelectric power. That abundance lets HIVE lock in competitive energy rates, a decisive factor in an industry where electricity is often the biggest operating cost.

HIVE participates in demand response, which means it can dial its power usage up or down depending on what the grid needs.

Gabriel Lamas, HIVE’s Country President in Paraguay, has framed the company as a contributor to the nation’s energy resilience. In his telling, HIVE’s ability to modulate demand helps stabilize the grid rather than simply drain it.

What this means for HIVE and the mining sector

For investors, the clearest near-term signal is execution. HIVE has hit two phases in 2025, and Phase 3 is the test of whether that pace holds through Q3 2026.

Additional capacity at Yguazú should support the push toward 35 EH/s. The current 8.5 BTC per day gives a baseline for judging how much the extra 100 MW actually adds once it is running.

The concentration risk is worth watching. HIVE is putting a large share of its growth into a single country and a single power source, which ties its fortunes closely to Paraguay’s energy policy and the Itaipú supply.

Key milestones to track include whether Phase 3 lands by Q3 2026, how daily Bitcoin output changes once the new capacity is live, and whether the AI factory stays on track for 2027.