The previous generation of technology experts insisted that “information wants to be free.” They meant that a handful of large corporations (CBS, NBC, and The New York Times) could no longer control what Americans watched, read, and understood.
However, information might be “free” of anyone’s control, but it was never going to be “free” of charge. It costs money to collect, store, and analyze information. Data centers are power-hungry and proliferating due to the growth of artificial intelligence (AI). The RAND Corporation wrote this year that, “if exponential growth in chip supply continues, AI data centers will need 68 GW in total by 2027 — almost a doubling of global data center power requirements from 2022 and close to California’s 2022 total power capacity of 86 GW.”
The point is that we will need a significant number of data centers and considerable energy to power them, not just in the United States. Just as we need military partnerships with our global allies, in this modern era of data, we need data partnerships with our allies.
We should expand data center partnerships with friendly nations that have plenty of power. That would be a way to deploy AI for mutual diplomatic and economic gain, bolstering our economic cooperation and stemming China’s aggressive Belt and Road investments in our backyard. One nation in particular comes to mind here: Our friendly ally, Paraguay.
The Trump administration is already thinking about the possibilities.
“Paraguay has a hydroelectric plant right now, and they were in a long-term deal with Brazil, where they sold them 50% of the energy being produced. That deal is now expired,” Secretary of State Marco Rubio recently testified, in response to a question by Sen. John Curtis. “They’re trying to figure out what to do with the 50% of electricity generated by hydropower that is no longer going to be going to Brazil, and they can’t put that in a tank and ship it overseas. So someone, if they’re smart, is going to go down to Paraguay and open up an AI facility.”
This makes sense. The United States-Paraguay partnership dates back to the Paraguayan War, when President Rutherford B. Hayes intervened to prevent Paraguay from being divided between Brazil and Argentina. There’s even a “Department” (region) in the country named President Hayes.
Another tie that binds is that Paraguay shares America’s commitment to Taiwan.
“As Taiwan’s only diplomatic partner in South America, and one of twelve Taiwan-recognizing countries, Paraguay is an important ally in supporting Taiwan’s meaningful participation in the international community and continued example as a resilient democracy and technological powerhouse,” the State Department wrote in 2024. The change of administrations didn’t change any of those facts.
Paraguay is one of our last key allies that hasn’t been tainted by China’s Belt and Road Initiative investments. “Since 2020, China has become South America’s top trading partner, actively promoting investment and cooperation agreements that expand its influence in the region,” UPI recently reported. Regional officials are urging Paraguay to push back, and the demand for energy to power allows the U.S. to shore up key allies and stem the tide of China’s Belt and Road aggression. Secretary of State Marco Rubio added that energy will be a focal point of American foreign policy “for the next 100 years.”
That’s a good start, and I won’t be around to see whether the focus changes, but I’d bet energy will be crucial even longer than that! Still, it is refreshing to see Secretary Rubio zero in on the central issue of our time.
Let’s expand our successful alliances with friends like Paraguay, leveraging the strengths of clean, reliable energy like hydropower, while strengthening our partnerships and resolve to information that doesn’t come free but does enable the future of freedom.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.