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Itaipu Treaty
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Legislation

Itaipu Treaty

1973 treaty between Brazil and Paraguay governing the Itaipu Dam.

The 1973 Itaipu Treaty governs Brazil and Paraguay's joint use of the Paraná River's hydroelectric resources and supplies the legal framework for Itaipu Binacional and its electricity arrangements.

Last refreshed: 22 October 2026 · Appears in 1 active topic

Key Question

Can Paraguay host AI infrastructure before Annex C is settled?

Timeline for Itaipu Treaty

#17 21 Oct
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Background

The Itaipu Treaty is the 1973 agreement between Brazil and Paraguay that created the legal framework for jointly using the Paraná River's hydroelectric resources. It governs Itaipu Binacional and provides the basis for the two countries' responsibilities and electricity arrangements at the dam.

Annex C sets the treaty's financial basis and electricity-service rules. The treaty required the annex to be reviewed after 50 years, and negotiations remained unfinished in 2026. Those talks cover the power-sale terms that would apply alongside Paraguay's planned AI infrastructure using Itaipu electricity. Crusoe and Araico announced one such computing project in October 2026, while Brazil and Paraguay were still renegotiating the rules. The treaty does not itself approve a particular industrial customer or computing site.

Common Questions
What is the Itaipu Treaty?
It is the 1973 Brazil-Paraguay agreement governing the joint hydroelectric use of the Paraná River and Itaipu Binacional.Source: Itaipu Binacional
What does Annex C of the Itaipu Treaty cover?
Annex C sets the financial basis and electricity-service rules for Itaipu Binacional.Source: Itaipu Binacional
Why is Annex C being reviewed?
The treaty required its terms to be reviewed after 50 years, taking account of construction debt and contracted power between both countries.Source: Itaipu Binacional
Why does the Itaipu Treaty matter to Paraguay's AI data-centre plan?
The planned infrastructure would use Itaipu power while Brazil and Paraguay are still negotiating the dam's electricity-sale rules.Source: Tribuna PR
Source Material

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 22 October 2026. Editorial standards.