This Tourist-Friendly Country Is Transforming Into The 'Silicon Valley Of South America'

Can you point out Paraguay on a world map? The landlocked South American nation tucked between Argentina, Brazil, and Bolivia is one of the least-visited countries on the continent. Yet it's also one of South America's — and, perhaps, the world's — most promising tech corridors. Paraguay's rise on the global scene largely stems from its commitment to clean energy. The country's almost entirely powered by hydropower, which supplies 90% of its domestic electricity and also provides substantial power to Brazil. Two major dams make this possible — the Itaipu Dam, one of the largest hydroelectric facilities in the world, and the Yacyretá Dam, further downstream on the Paraná River that divides Paraguay from Brazil. Thanks to this renewable infrastructure, Paraguay enjoys some of the lowest electricity prices in South America and is the world's largest exporter of clean energy. For energy-intensive tech operations — like data centers, crypto mining, and cloud computing — this clean, affordable energy gives Paraguay an edge in becoming a low-carbon hub for green tech. Newsweek and the BBC have even hailed it as the "Silicon Valley of South America."

Although the capital, Asunción, is the oldest city on the continent, it's become Paraguay's youthful, energetic urban center with its burgeoning tech infrastructure. The country's second-largest city, Ciudad del Este, is also thriving as a fast-growing commercial hub thanks to its strategic location near the Argentine and Brazilian borders and proximity to the Itaipu Dam.

What's more, Paraguay's population skews young — the average age is 27, about 80% of the population is under 50, and more than half is under 30. Even the leadership is young — President Santiago Peña is in his mid-40s. The government has prioritized education initiatives as part of their overall growth strategy, investing heavily in training programs focused on coding, programming, tech entrepreneurship, and English language skills, creating a thriving talent pool. The country has also fostered favorable business conditions, actively courting foreign investment and creating technology parks and startup incubators. 

Paraguay's unique culture and history stretch beyond its ambitions to become South America's Silicon Valley. Before Spanish colonizers arrived in the 16th century, the region was home to the Guaraní people, whose language is still spoken by 80% of Paraguayans and endures within the nation's identity (Spanish is also spoken, particularly in education or business). Asunción, founded in 1537, was one of the first European settlements in South America and became a hub for colonialist exploits. After winning independence from Spain in 1811, Paraguay endured decades of war and dictatorship — namely the War of the Triple Alliance in the 1860s along with Alfredo Stroessner's 35-year dictatorship, which ended in 1989. Since then, the country's embraced democracy and become financially stable.

Today, Paraguay is looking ahead. Despite being overlooked on many South American travel itineraries, Paraguay is safe and welcoming for tourists, with locals known for their warmth and easygoing natures. It's a budget-friendly vacation destination that remains authentic and uncrowded for now. As alternatives (or supplements) to Brazil's tourism haven and to Argentina's famous city of Buenos Aires, "the Europe of South America," Paraguay offers Asunción's old-city charm, lush Paraná rainforests, the Jesuit mission ruins of Trinidad and Jesús  (a UNESCO World Heritage Site), and, of course, the impressive dams.

Paraguay ranks highly in Gallup's Global Emotions report, reflecting respect, rest, hospitality, and a relaxed pace of life. Visitors can join locals as they sip tereré — cold mate tea– while watching soccer, explore nature reserves and national parks, or join lively cultural festivals that blend Guaraní and Spanish traditions. It's quickly emerging as a destination for tech entrepreneurs and tourists alike, seeking authentic, off-the-beaten-path experiences.

Most international travelers arrive at Silvio Pettirossi International Airport in Asunción, with flights from hubs like Miami and Madrid, usually with one stop. If you're already in South America, you can drive across the border — just be sure to read the fine print of any rental car agreements, as some of them might restrict border crossings. Regular buses are also available from many South American metro areas, like São Paolo in Brazil, Buenos Aires in Argentina, and La Paz in Bolivia. Within Paraguay, bus companies connect cities and towns — booking via Plataforma10 with a foreign credit card is recommended. U.S. visitors can stay in Paraguay up to 90 days without a visa, making travel straightforward.

In larger cities, you can find hotels for any budget as well as Western hotel chain lodging, while homestays and eco-lodges will be your best bet further out in the rural and jungle areas. Paraguay has stunning ecosystems and landscapes, with a variety of unique places to stay and tours to take, with some surprisingly sophisticated options. For example, in the southern part of the country near the border with Argentina, Tava Glamping offers luxurious accommodations in chic wood and stone cabins with views of Ypacarai Lake and also has an infinity pool and dry and wet saunas right onsite.