HPC AI Data Center
Asunción, Paraguay$Paraguay
AI-Focused Data Center
100% Hydroelectric Power
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20.7%
Base Case IRR
$400M
Investment Volume
$130K
Revenue Per Rack
What is HPC AI Data Center?
HPC AI Data Center represents fractional ownership in a cutting-edge $400 million AI-focused data center located in Asunción, Paraguay. This state-of-the-art facility is purpose-built for NVIDIA's Blackwell platform, offering unparalleled computational efficiency for high-density AI workloads while leveraging Paraguay's abundant hydroelectric power infrastructure.
Unlike traditional data centers, this facility is specifically optimized for artificial intelligence applications, featuring liquid cooling technology that achieves a Power Usage Effectiveness (PUE) of approximately 1.2. The center operates in Paraguay's tax-free zone, benefiting from low operational costs and advantageous energy pricing at ~$0.05/kWh.
40 MWInitial Capacity
200 MWMaximum Scale
1.2PUE Rating
$0.05/kWhPower Cost
The AI Factory: Producing Intelligence at Scale
HPC AI Data Center functions as 'The AI Factory,' a purpose-built facility designed to produce artificial intelligence at unprecedented scale. The center features modular high-density design with 40 MW building blocks, enabling scalability up to 200 MW as demand grows and customer contracts are secured.
- NVIDIA Blackwell Platform — Most powerful AI hardware available ensuring maximum computational efficiency
- Modular Design — Flexible 40 MW building blocks allowing gradual expansion
- Liquid Cooling System — Free liquid cooling technology achieving industry-leading PUE of ~1.2
- High-Density Configuration — Optimized for AI workloads requiring intensive computational power
- Strategic Location — Asunción, Paraguay positioning for Latin American market expansion
Sustainable Competitive Advantages
Paraguay's unique energy infrastructure provides HPC AI Data Center with significant competitive advantages. The country generates 100% of its electricity from hydroelectric sources, making this one of the world's most sustainable data center operations while maintaining extremely low power costs.
The facility operates within Paraguay's tax-free zone, dramatically reducing operational expenses while benefiting from favorable regulatory environment. This combination of renewable energy, low costs, and supportive policies creates a compelling value proposition for AI workload customers.
Financial Performance & Revenue Model
The investment offers exceptional return potential with a base case IRR of 20.7%, supported by a robust revenue model generating $130,000 per rack plus power markup. Revenue projections include 8% annual price increases and long-term contracts with hyperscalers, cloud service providers, and AI research institutions.
- Base Case IRR — 20.7% internal rate of return with conservative assumptions
- Revenue Per Rack — $130,000 annual revenue plus power markup generating substantial cash flow
- Long-Term Contracts — Secured agreements with enterprise customers and cloud providers
- Annual Escalation — 8% yearly price increases built into customer contracts
- Multiple Scenarios — Worst case 18.6% IRR, MVP case 18.2% IRR demonstrating downside protection
AI Market Demand & Growth Drivers
The artificial intelligence industry continues experiencing exponential growth, creating unprecedented demand for specialized computing infrastructure. Enterprise adoption of AI technologies, machine learning applications, and generative AI models requires dedicated high-performance computing resources that traditional data centers cannot efficiently provide.
HPC AI Data Center addresses this market gap by offering purpose-built infrastructure optimized for AI workloads. The facility's NVIDIA Blackwell platform compatibility ensures compatibility with the latest AI frameworks and applications, positioning it at the forefront of technological advancement.
Strategic Location Benefits
Asunción, Paraguay provides an ideal location for AI infrastructure expansion into Latin America. The country's political stability, business-friendly environment, and exceptional energy resources create a foundation for long-term operational success while serving growing regional demand for AI computing services.
- Regional Hub — Strategic positioning for Latin American AI market expansion
- Energy Security — 100% hydroelectric power with massive surplus capacity
- Regulatory Environment — Tax-free zone benefits and supportive government policies
- Infrastructure — Modern telecommunications and connectivity infrastructure
- Cost Advantage — Significantly lower operational costs compared to traditional markets
Asset Management & Operational Strategy
The management strategy emphasizes modular expansion aligned with customer contract acquisition, ensuring capital efficiency and risk management. The facility's high operational efficiency minimizes ongoing costs while maximizing revenue potential through premium pricing for specialized AI computing services.
HPC Data brings extensive European data center management experience to the Latin American market, providing operational expertise and financial management capabilities. The team's background in data center engineering and AI technologies ensures optimal facility performance and customer satisfaction.
Investment Timeline & Milestones
The project targets stable cash flow generation from customer contracts within 3-5 years, with initial operations commencing upon completion of the 40 MW expansion. The modular design allows for phased development reducing initial capital requirements while enabling rapid scaling as demand materializes.
- Phase 1 — 40 MW initial expansion with $400 million investment
- Customer Acquisition — Long-term contracts with hyperscalers and AI companies
- Operational Ramp — 3-5 year timeline to achieve stable cash flow generation
- Expansion Options — Scalability to 200 MW based on market demand
- Exit Strategy — Multiple exit pathways including strategic sale or continued operations
Management Team Expertise
Led by CEO David Steinbauer, the HPC Data team combines deep data center operational experience with expertise in AI technologies and financial management. Steinbauer's background encompasses data center operations, investor relations, software engineering, and generative AI technologies, providing comprehensive leadership for the project.
The team's proven track record in European data center markets, combined with specialized knowledge of AI infrastructure requirements, positions HPC AI Data Center for successful execution and operational excellence in the rapidly evolving artificial intelligence landscape.
Investment Thesis & Risk Management
This investment capitalizes on the convergence of massive AI infrastructure demand, Paraguay's unique energy advantages, and the team's proven operational expertise. The facility's purpose-built design for AI workloads, combined with cost advantages and regulatory benefits, creates a compelling competitive position.
Risk mitigation comes through diversified customer base, long-term contract structures, and the underlying value of critical AI infrastructure. Paraguay's energy abundance and supportive regulatory environment provide additional downside protection while the modular expansion approach limits initial capital exposure.
AI Data Center
Listed January 2025
Infrastructure Investment
Sustainable Operations
This opportunity is available by enquiry only.
Due to regulatory or investment requirements, direct purchase is not enabled for this listing. Please click Enquire Now to connect with our team for more details and next steps.
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