Paraguay – South America’s Silicon Valley?

Gabriela Sibeles is on a mission – to help turn Paraguay into the Silicon Valley of South America.

When she grew up in the landlocked country, sandwiched between Brazil and Argentina, she said the country “wasn’t focused on high-tech.”

But it was different for Ms. Sibbels, as her parents worked in the technology sector. She was inspired to study in the United States, where she earned a degree in computing and neuroscience from the University of California, Berkeley.

After graduating, she spent eight years working in Silicon Valley, near San Francisco, with roles in several US start-ups.

But instead of staying permanently in the United States, a few years ago she decided to return home to Paraguay. She is now helping to lead efforts to build a large, successful technology sector that will put the country of seven million on the world map — and attract some of the world’s tech giants.

“I’ve seen first-hand the impact technology can have on your life,” Ms. Siebels says. “After being exposed to such a different world (in Silicon Valley), it is my responsibility to bring that mentality back and combine it with the talent I see in Paraguay.”

She is now a partner in the global technology and investment firm Cibersons, which is headquartered in Asuncion, the capital of Paraguay.

While most countries want to build a world-class technology sector, Paraguay has a clear advantage in one respect – an abundance of cheap green electricity.

This is thanks to 100% of her generation now coming from her Hydropower.

This centers around the giant Itaipu Dam on the Parana River, which forms part of the border between Paraguay and Brazil. This huge hydroelectric station, The largest in the world outside China, It provides 90% of Paraguay’s electricity needs, and 10% of Brazil’s needs.

In fact, this is Paraguay’s electricity surplus as it has the highest electricity prices Lowest in South America.

And he is the world The largest source of clean energy.

Paraguay’s government hopes the country’s abundance of cheap green electricity will attract global technology companies that are increasingly focused on the massive power requirements of artificial intelligence computing.

“If you want to install any technology investment such as AI data centers, keep in mind that hydropower is renewable and constant,” says Paraguayan software developer Sebastian Ortiz Chamorro.

“Compared to other renewable energy sources such as wind or solar, which have their ups and downs, they are more attractive for setting up data centers or other electrical-intensive activity that requires a constant source of electricity.”

He adds that in addition to the Itaipu plant and Paraguay’s other large state-owned hydropower plant, the Yacerita Dam, private companies can easily build their own smaller facilities.

On a visit to California last year, Paraguayan President Santiago Peña spoke with companies like Google and OpenAI To encourage them to invest in Paraguay. It remains to be seen whether the industry giants will open major operations in the country.

Technology and Communications Minister Gustavo Filat is working closely with the President on ongoing efforts.

“We have the smallest population. We have a lot of renewable green energy. We have low taxes and economic stability,” he says proudly.

I toured with the Minister of the new digital park planned near Asuncion’s main airport. Currently it is green fields and some army barracks.

Mr. Filati unveils plans to showcase the lakes, a childcare center and other buildings that he says should be ready in less than two years.

“The government will invest about $20 million (£15 million) in the first phase, but the idea is for private companies to invest the rest,” he says.

Although the park is not ready yet, Vilatte says the collaboration already taking place between the public, private and university sectors is key to building an ecosystem to attract foreign investors.

The government believes that the country’s youth will be a major attraction, capable of providing a large technology workforce. The average age in Paraguay is 27 years.

But more young people will have to be trained. The technology minister says the new digital park will also be home to the University of Technology, a joint venture between Taiwan and Paraguay.

Meanwhile, there are other initiatives to train youth in the country. “We are working hard to create a pool of software engineers, programmers and everything you need to provide software services,” says Vanessa Cañete, head of the Paraguayan Chamber of Software Industry trade group.

Ms Canetti says she is also passionate about encouraging more women to study computer engineering. In 2017, she founded Girls Code, a non-profit aimed at closing the gender gap in technology.

It organizes programming and robotics workshops for teenagers and young women, more than 1,000 of whom have received some type of training so far.

Canetti adds that software developers also take English classes for up to four years to improve their communications with external companies.

The people I met were full of positivity about what Paraguay has to offer the world of technology, but also realistic.

Ms Siebels says there are still “growing pains” for foreign investors, with issues such as bureaucracy, which can get in the way of adapting local contracts to standardized international contracts.

But she insists: “If you put innovation at its core and take advantage of all the benefits that the country has, I believe Paraguay can become a superpower.”