Taiwan’s Ministry of Foreign Affairs announced on May 9 that President Lai Ching-te and Paraguayan President Santiago Peña jointly witnessed the signing of three cooperation documents.
These include, “a treaty on mutual legal assistance in criminal matters, an MOU on cybersecurity cooperation, and an MOU on the Paraguay–Taiwan sovereign AI and computing infrastructure investment project.”
The agreements were signed by Foreign Minister Lin Chia-lung, Paraguayan Foreign Minister Rubén Ramírez Lezcano, as well as Taiwan’s ministers of digital development and justice.
According to a report by FTV News, President Lai Ching-te said the three agreements are highly significant because they’ll help both Taiwan and Paraguay strengthen transnational crime fighting, cooperate to enhance cyber defense capabilities and create an AI computing center investment MOU combining Taiwan’s AI technology with Paraguay’s abundant green energy resources.
Lai emphasized that facing the expansion of authoritarianism, both countries—of the global democratic value chain—should continue strengthening cooperation and promote “democracy, peace, and prosperity” as a path connecting the world.
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AI cooperation seen as major milestone
Taiwan’s Ministry of Foreign Affairs said the “Taiwan–Paraguay Sovereign AI Computing Center Investment MOU” represents a major milestone in bilateral cooperation on artificial intelligence. It is also described as the world’s first initiative in which two countries jointly build AI computing infrastructure.
The project will combine Taiwan’s high-tech capabilities with Paraguay’s abundant green energy resources to jointly develop sovereign AI computing infrastructure. The goal is to support industrial upgrading in Paraguay and address global demand for computing power and energy driven by AI development.
Officials said the initiative further deepens Taiwan–Paraguay cooperation in technology and strategic industries, including AI, cybersecurity, digital governance, and judicial cooperation.
The Ministry of Foreign Affairs said the project will be implemented through a bilateral entity called the “Binational Digital Entity,” which will be jointly and equally governed by both governments.
The initiative will be guided by principles of reciprocity, transparency, and the use of clean, trustworthy technology that is free from influence by authoritarian powers.
After the memorandum is signed, both sides will first conduct feasibility studies and due diligence assessments. They plan to begin a pilot phase, under a bilateral agreement, with about 10MW (megawatts) of computing capacity. This initial stage will be used to test the project’s technical feasibility, operational model, and commercial parameters, and will serve both sovereign and governmental use cases.
If the pilot phase is successful, the next stage will involve coordinated planning through joint investment mechanisms, working together with private investors and international partners. Capacity would then be expanded to 100MW, and ultimately scaled up to a hyperscale facility of up to 1GW (gigawatt).
Cybersecurity, justice cooperation, and long-term partnership
The Ministry of Foreign Affairs said the “Taiwan–Paraguay cybersecurity cooperation memorandum” focuses on, cybersecurity policy exchanges, sharing intelligence on cyberattacks and cybersecurity talent training and exchanges, Taiwan Today reported.
The goal is to strengthen both countries’ ability to respond to emerging cyber threats and improve digital resilience.
The “Taiwan–Paraguay Mutual Legal Assistance Treaty in Criminal Matters” aims to establish a cooperation framework for criminal investigations, evidence collection, exchange of criminal records and cross-border law enforcement cooperation.
It reflects both sides’ determination to jointly combat transnational crime, improve judicial cooperation efficiency, and safeguard the rule of law and public safety.
The Ministry noted that the Republic of China (Taiwan) and Paraguay have maintained diplomatic relations for 69 years. The two countries have long enjoyed strong ties, and in recent years, under the “Allied Prosperity Project,” they have continued to leverage each other’s strengths to develop diverse areas of cooperation.
The three agreements signed this time reflect a shared vision of promoting technological development and strengthening governance through bilateral collaboration.
Paraguayan president condemns pressure on Taiwan
According to the Ministry’s press release, President Santiago Peña thanked Taiwan for its hospitality and supported Taiwan asserting its sovereignty. He said that since the establishment of diplomatic relations in 1957, nearly 69 years of friendship have remained firm despite challenges.
He reiterated Paraguay’s support for Taiwan’s participation in international organizations and called for international recognition of the Taiwanese people’s right to self-determination.
He also strongly condemned military exercises and economic pressure against Taiwan, opposing any efforts to isolate the island internationally.
