The Impact of the Cryptocurrency Mining Boom on South America’s Clean Energy Paradise

This reporting project will focus on how a South American country vulnerable to the effects of global warming is missing an opportunity to leverage its clean energy for a sustainable transition. Instead, Paraguay is attracting investors from yet another extractive industry: cryptocurrency mining.

Large-scale data centers for cryptomining have been set up across the country over the years. Loose norms and low taxes, something the president publicized at COP28, are drawing investors from Latin America, Canada, the U.S., Europe, and China. Local investment has also been on the rise, legal or not. Some politicians have taken part in it.

People have reported issues, such as water stress and power outages, where data centers operate. Some voice health concerns due to the constant noise coming from these infrastructures. Some cases have already reached the courts.

The team for this reporting project aims to conduct an investigation with a multi-layered methodology. The goal is to expose the extent of the damage of these investments on the ground and how authorities are trading off a much needed transition to lower emissions.