# Paraguay President Peña signs three agreements with Taiwan, including a 1-gigawatt sovereign AI data centre MOU, on a May state visit
> Paraguay President Santiago Peña met Taiwan President Lai Ching-te in Taipei on 8 May 2026 and signed agreements on mutual legal assistance in criminal matters, cybersecurity cooperation, and a Sovereign AI and Computing Infrastructure Investment MOU envisioning a phased computing campus reaching 1 gigawatt; Taiwan simultaneously opened its market to Paraguayan poultry exports

**Meta:** type: event · date: 2026-05-08 · heads: 长远之局, 谁的钱 · 7 takes · 5 lenses · 3 regions

## Summary

[Paraguay](/zh/entity/paraguay) President Santiago Peña made a state visit to Taiwan from 7-10 May 2026, meeting Taiwan President Lai Ching-te on 8 May and signing three formal instruments: a Treaty on Mutual Legal Assistance in Criminal Matters (with Taiwan Justice Minister Cheng Ming-chien), an MOU on Cybersecurity Cooperation (with Digital Affairs Minister Lin Yi-jing), and a headline MOU on Sovereign AI and Computing Infrastructure Investment (with Foreign Minister Lin Chia-lung). The AI MOU envisages three phases: 10 megawatts of computing capacity in Phase 1, 100 megawatts in Phase 2, and a final phase targeting 1 gigawatt, which would represent one of the world's largest computing campuses. Separately, Taiwan agreed to open its market to Paraguayan poultry (chicken) exports, a trade gain Asunción had been seeking for years. The visit was attended by a delegation of more than 40 Paraguayan business representatives led by Industry and Commerce Minister Marco Riquelme, and was Peña's fourth state visit to Taiwan as president. Taiwan's President Lai conferred a state decoration on Peña. China's Foreign Ministry on 12 May accused Paraguay of acting as "pawns" of Taiwan. Paraguay is one of approximately 12 countries that formally recognise Taiwan over the People's Republic of China.

## The split

Peña and his government framed the agreements as concrete economic returns on Paraguay's diplomatic recognition of Taiwan, which Beijing has repeatedly pressured Asunción to reverse. Taiwan presented the visit as validation of its diplomatic position in Latin America and highlighted the AI investment MOU as a model for how recognition can generate technology transfers. China's Foreign Ministry response was standard, accusing both parties of interference in China's internal affairs. Within Paraguay, expert commentary noted aspects of the AI MOU that were considered contentious, including ambiguities about who would operate the data centres and what data sovereignty guarantees would apply. The mutual legal assistance treaty has practical significance for extradition cooperation on criminal matters.

## By the numbers
- 3, formal instruments signed during the May 8 bilateral meeting
- 1 GW, target computing capacity in Phase 3 of the Sovereign AI MOU
- 40+, Paraguayan business delegates accompanying the president
- 4th, number of Peña's state visits to Taiwan as president since 2023
- ~12, total countries worldwide that formally recognise Taiwan over the PRC

## Why it matters

The AI data centre MOU is the most substantive economic commitment yet made between Taiwan and Paraguay within the diplomatic relationship. If Phase 3 is realised, a 1-gigawatt compute campus would represent a transformative infrastructure investment for a country with Paraguay's economic scale. It also signals a Taiwanese strategy of using technology investment as a diplomatic tool to anchor relationships with remaining recognition partners. For Paraguay, the deals reduce the economic arguments for switching to Beijing. The criminal justice treaty has near-term practical value for narco-trafficking prosecution cooperation.

## What to watch
- Whether Phase 1 of the AI data centre MOU progresses from signature to actual construction and commissioning.
- Whether Taiwan's poultry market opening translates into measurable Paraguayan export volumes.
- Whether China increases diplomatic pressure on Paraguay in response to the visit and the computing MOU.
- Whether the mutual legal assistance treaty is ratified by both parliaments and used in any concrete extradition or evidence-sharing request.

## Regional takes (batched by bias / lens)

### Authoritative record of the bilateral talks and document signings between the two presidents
- **Taiwan Presidential Office** (Asia, en) — Official record of the meeting between President Lai Ching-te and Paraguay President Santiago Peña Palacios on 8 May 2026, at which three formal instruments were signed: a Treaty on Mutual Legal Assistance in Criminal Matters (with Justice Minister Cheng Ming-chien), an MOU on Cybersecurity Cooperation (with Digital Affairs Minister Lin Yi-jing), and an MOU on Sovereign AI and Computing Infrastructure Investment (with Foreign Minister Lin Chia-lung). President Lai conferred a state decoration on Peña. Taiwan opened its market to Paraguayan poultry (chicken) exports.
  > "President Lai and President Peña of Paraguay hold bilateral talks, witness signings of mutual legal assistance treaty, cybersecurity MOU, and Sovereign AI and Computing MOU."
  Source: https://english.president.gov.tw/News/7133

### Paraguay's official news agency record of the state visit and its diplomatic objectives
- **Paraguay Agencia IP** (Paraguay, en) — Confirmed President Peña's four-day state visit to Taiwan (May 7-10) with a 40-plus business delegate delegation led by Industry and Commerce Minister Marco Riquelme. Framed the visit as strengthening the Paraguay-Taiwan 'strategic alliance' and delivering trade and investment benefits, with the AI data centre MOU presented as the centrepiece commercial outcome.
  > "President Peña begins official visit to Taiwan to strengthen the alliance and benefits for both countries."
  Source: https://www.ip.gov.py/ip/2026/05/07/president-pena-begins-an-official-visit-to-taiwan-to-strengthen-the-alliance-and-benefits-for-both-countries/

### US broadsheet; covered the visit in the context of growing Chinese pressure on Paraguay to switch recognition
- **Washington Post** (United States, en) — Reported the state visit with context on China's sustained diplomatic pressure on Paraguay, one of only approximately 12 countries maintaining formal recognition of Taiwan. Noted the AI data centre MOU as a significant economic incentive for Paraguay to maintain its position. China's Foreign Ministry subsequently accused Paraguay of acting as 'pawns' of Taiwan.
  > "Paraguay's president visits Taiwan as pressure from China grows; AI data centre deal signals economic stakes."
  Source: https://www.washingtonpost.com/world/2026/05/07/paraguay-president-pena-taiwan-china/b98b6f82-49d7-11f1-a119-857cd2bf4fd4_story.html

### Paraguay's leading daily; day-of reporting on all three instruments signed and the poultry market opening
- **ABC Color** (Paraguay, es) — Confirmed signatures of all three instruments: the mutual legal assistance treaty, the cybersecurity MOU, and the Sovereign AI and Computing MOU. Reported the poultry market opening as a concrete trade win. Noted Peña described the visit as his fourth to Taiwan as president and declared the AI data centre project 'an enormous challenge' for Paraguay.
  > "Paraguay y Taiwán firman acuerdos de cooperación en justicia, ciberseguridad y tecnología en visita de estado de Peña."
  Source: https://www.abc.com.py/internacionales/2026/05/08/paraguay-y-taiwan-firman-acuerdos-de-cooperacion-en-justicia-ciberseguridad-y-tecnologia/

### unlabelled
- **Focus Taiwan** (Asia, en) — 
  Source: https://focustaiwan.tw/politics/202605100007
- **Taiwan News** (Asia, en) — 
  Source: https://www.taiwannews.com.tw/news/6358067
- **ABC Color** (Paraguay, es) — 
  Source: https://www.abc.com.py/politica/2026/05/31/data-center-ia-paraguay-taiwan-en-dialogo-con-abc-experto-cita-aspectos-polemicos-del-acuerdo/

## Across the graph
- Entities: Paraguay, Place:taiwan Strait

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