{"id":43616,"date":"2026-07-01T14:01:05","date_gmt":"2026-07-01T12:01:05","guid":{"rendered":"https:\/\/europeanvalues.cz\/?p=43616"},"modified":"2026-07-01T14:06:08","modified_gmt":"2026-07-01T12:06:08","slug":"ai-diplomacy-in-action-taiwan-paraguays-yguazu-digital-project","status":"publish","type":"post","link":"https:\/\/europeanvalues.cz\/en\/ai-diplomacy-in-action-taiwan-paraguays-yguazu-digital-project\/","title":{"rendered":"AI Diplomacy in Action: Taiwan\u2013Paraguay\u2019s \u201cYguaz\u00fa Digital\u201d Project"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"43616\" class=\"elementor elementor-43616\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7b5376e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7b5376e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5286a158\" data-id=\"5286a158\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6965738a elementor-widget elementor-widget-text-editor\" data-id=\"6965738a\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Photo: President Lai Ching-te meets President Santiago Pe\u00f1a. Source: Office of the President\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6af0d217 elementor-widget elementor-widget-text-editor\" data-id=\"6af0d217\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-6af0d217{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-311d9738 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"311d9738\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7ada603e\" data-id=\"7ada603e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-fc7e172 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fc7e172\" data-element_type=\"section\" data-e-type=\"section\" data-no-translation=\"\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-48c1d42\" data-id=\"48c1d42\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6d48b3f0 elementor-widget elementor-widget-text-editor\" data-id=\"6d48b3f0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2 style=\"font-weight: 400;\"><strong>What\u2019s happening?<\/strong><\/h2><p style=\"font-weight: 400;\">On his fourth visit to Taiwan, Paraguayan President Santiago Pe\u00f1a <a href=\"https:\/\/mitic.gov.py\/alianza-con-taiwan-abre-camino-al-desarrollo-de-la-ia-en-paraguay\/\" target=\"_blank\" rel=\"noopener\">announced<\/a> a joint \u201c50-50\u201d <a href=\"https:\/\/www.ip.gov.py\/ip\/2026\/05\/14\/alliance-with-taiwan-positions-paraguay-in-the-global-race-for-ai-development-pena-highlights\/\" target=\"_blank\" rel=\"noopener\">partnership<\/a> with Taiwan to develop one of the world&#8217;s largest AI data center projects in Paraguay. The project will be developed under a binational entity named \u201c<a href=\"https:\/\/www.abc.com.py\/economia\/2026\/05\/11\/paraguay-y-taiwan-crearan-yguazu-digital-un-gigante-de-ia-que-consumira-una-turbina-y-media-de-itaipu\/\" target=\"_blank\" rel=\"noopener\">Yguaz\u00fa Digital<\/a>l\u201d and is framed as the world&#8217;s <a href=\"https:\/\/www.cna.com.tw\/news\/aipl\/202605090033.aspx\">first<\/a> government-to-government plan to jointly build AI computing facilities. According to the proposal, the center will help Paraguay develop its AI industry and meet rising global demand for computing power and clean energy. The agreement proposes a \u201cDigital Data Embassy\u201d that would give the AI data center\u2019s servers and data <a href=\"https:\/\/www.abc.com.py\/economia\/2026\/05\/11\/paraguay-y-taiwan-crearan-yguazu-digital-un-gigante-de-ia-que-consumira-una-turbina-y-media-de-itaipu\/\" target=\"_blank\" rel=\"noopener\">Yguaz\u00fa Digital<\/a> protections to secure and safeguard the information. The project can be understood as part of Pe\u00f1a government\u2019s \u201c<a href=\"https:\/\/agendadigital.mitic.gov.py\/sobre-el-proyecto\/\" target=\"_blank\" rel=\"noopener\">Digital Transformation<\/a>&#8221; project which aims to turn Paraguay into a regional technology hub.<\/p><h2 style=\"font-weight: 400;\"><strong>What\u2019s the broader picture?<\/strong><\/h2><p style=\"font-weight: 400;\">Through this project, Taiwan is expanding its <a href=\"https:\/\/en.mofa.gov.tw\/News_Content.aspx?n=1328&amp;sms=273&amp;s=118902\" target=\"_blank\" rel=\"noopener\">integrated<\/a> diplomacy by leveraging national strengths in technology and digital innovation. Taiwan frames this as a flagship example of sustainable development, as it will be powered by Paraguay\u2019s surplus hydroelectric energy.<\/p><p style=\"font-weight: 400;\">The integrated diplomacy approach envisioned by President Lai Ching-te (\u8cf4\u6e05\u5fb7), which aims to realize values-based diplomacy and transform Taiwan into a thriving global economic powerhouse, mirrors Paraguay&#8217;s Digital Transformation initiative.<\/p><p style=\"font-weight: 400;\">Of course, this is not the first project Taiwan has collaborated on in Paraguay. The Health Information System (HIS), developed <a href=\"https:\/\/www.icdf.org.tw\/wSite\/ct?xItem=73589&amp;ctNode=31572&amp;mp=2\" target=\"_blank\" rel=\"noopener\">jointly<\/a> by the International Cooperation and Development Fund (TaiwanICDF) and Paraguayan partners, is now in use in more than 1000 public healthcare facilities across the country. The success of this program may have given Taiwan the confidence to initiate and expand projects of this scale in the country.<\/p><p style=\"font-weight: 400;\">This ambitious project can also be considered\u00a0 part of Taiwan\u2019s new diplomatic vision under the so-called Double-12 structure. The Double-12\u00a0 (\u7e3d\u5408\u5916\u4ea4\u96d912) in Taiwan is a way of organizing integrated diplomacy <a href=\"https:\/\/www.mofa.gov.tw\/News_Content.aspx?n=95&amp;s=121417\" target=\"_blank\" rel=\"noopener\">proposed<\/a> by Foreign Minister Lin Chia-lung. The first 12 refer to key foreign policy directions, such as strengthening ties with its official diplomatic allies, expanding participation in international organizations, and promoting regional security and economic cooperation. The second 12 focus on like-minded countries and practical areas of implementation. The project&#8217;s emphasis on sovereign AI aligns closely with these broader diplomatic and technological objectives.<\/p><p style=\"font-weight: 400;\">Needless to say the project is not without <a href=\"https:\/\/www.abc.com.py\/economia\/2026\/05\/12\/yguazu-digital-pedro-ferreira-advierte-que-el-pais-podria-empenar-su-mayor-riqueza-con-el-acuerdo-con-taiwan\/\" target=\"_blank\" rel=\"noopener\">detractors<\/a>, some of whom have raised concerns about Paraguay compromising its energy sovereignty. Several Paraguayan experts have also questioned whether the country possesses the human capital necessary to benefit from such an advanced technological investment. Members of Paraguay&#8217;s AI sector have warned that the project risks becoming disconnected from local realities because Paraguay currently lacks enough trained engineers, researchers, and AI specialists to <a href=\"https:\/\/www.abc.com.py\/politica\/2026\/05\/31\/data-center-ia-paraguay-taiwan-en-dialogo-con-abc-experto-cita-aspectos-polemicos-del-acuerdo\/\" target=\"_blank\" rel=\"noopener\">support<\/a> an ecosystem of innovation around the infrastructure. Instead of creating a broad-based knowledge economy, the project could depend heavily on foreign expertise and imported labor.<\/p><p style=\"font-weight: 400;\">Nonetheless, from Taiwan&#8217;s perspective, the significance of this project cannot be overstated. It represents not only a political and economic partnership, but also an opportunity to deepen Taiwan&#8217;s presence in South America through its only diplomatic ally in the region. In doing so, Taiwan seeks to position itself as a leader in green digital infrastructure.<\/p><h2 style=\"font-weight: 400;\"><strong>Why does it matter?<\/strong><\/h2><p style=\"font-weight: 400;\">The proposal is compelling: Taiwan&#8217;s technological expertise would be combined with Paraguay&#8217;s clean energy resources to create an alternative model for AI infrastructure development. In theory, the project aligns with and advances both countries&#8217; strategic visions for AI development. If successful, it could reinforce Taiwan&#8217;s image as a promoter of sustainable AI infrastructure and serve as a model that could be replicated elsewhere.<\/p><p style=\"font-weight: 400;\">As a result, the project may serve as a litmus test for Taiwan&#8217;s broader ambitions in AI diplomacy and digital infrastructure development, demonstrating whether large-scale technology partnerships can translate diplomatic vision into sustainable local outcomes that extend beyond the label of &#8220;green infrastructure.&#8221; Ultimately, its success will depend on whether the necessary legal framework, social sustainability considerations, and local development objectives are integrated throughout the implementation process. Only then can the project achieve both environmental and broader societal sustainability goals.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Photo: President Lai Ching-te meets President Santiago Pe\u00f1a. Source: Office of the President\u00a0 Foto: Prezident Laj na setk\u00e1n\u00ed s prezidentem\u00a0Pe\u00f1ou. Zdroj: Kancel\u00e1\u0159 prezidenta What\u2019s happening? On his fourth visit to Taiwan, Paraguayan President Santiago Pe\u00f1a announced a joint \u201c50-50\u201d partnership with Taiwan to develop one of the world&#8217;s largest AI data center projects in Paraguay. [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":43595,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[500],"tags":[583],"class_list":["post-43616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-jesus-barrios"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>AI Diplomacy in Action: Taiwan\u2013Paraguay\u2019s \u201cYguaz\u00fa Digital\u201d Project - European Values Center for Security Policy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/europeanvalues.cz\/en\/ai-diplomacy-in-action-taiwan-paraguays-yguazu-digital-project\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI Diplomacy in Action: Taiwan\u2013Paraguay\u2019s \u201cYguaz\u00fa Digital\u201d Project - European Values Center for Security Policy\" \/>\n<meta property=\"og:description\" content=\"Photo: President Lai Ching-te meets President Santiago Pe\u00f1a. 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Source: Office of the President\u00a0 Foto: Prezident Laj na setk\u00e1n\u00ed s prezidentem\u00a0Pe\u00f1ou. Zdroj: Kancel\u00e1\u0159 prezidenta What\u2019s happening? On his fourth visit to Taiwan, Paraguayan President Santiago Pe\u00f1a announced a joint \u201c50-50\u201d partnership with Taiwan to develop one of the world&#8217;s largest AI data center projects in Paraguay. 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