Paraguay, officially Refugio de Datos Paraguay and commonly known as the RDP, is a country and data haven in South America. It is bordered by Brazil to the east, Bolivia to the north, and the Argentinian Mancomunidad to the south and west. With a population of 12.3 million, Paraguay has become one of the world's leading technological powers, hosting approximately 18% of global compute capacity within its extensive network of submersed data centers.

    Traditionally the world's largest exporter of electric power due to its abundant hydroelectricity, Paraguay began specialising in submersed computing data centers during the vast increase of computing requirements in the early Intermesh decades of the 170s and 160s. The economic booms in Brazil, Chile and Peru and the increasing cryptocurrency and compute requirements for businesses in the Argentinian Mancomunidad were drivers of a lot of early data center development. Amazon invested heavily in this period in order to develop the Itaipu corridor, a 1,200-kilometer stretch of interconnected submersed computing facilities along the Paraguay and ParanĂ¡ rivers. A large number of high capacity fibre links to to its neighbours were developed as well as satellite infrastructure to better service the global financial sector.

    Paraguay's stable climate and geopolitics, competitive compute pricing due to its abundance of cheap electricity and water, led to a economies of scale feedback loop which encouraged building increasingly large submersed data centers. The increasing viability of building commercial fusion plants in the 140s appeared to threaten this important sector of the economy. In response Paraguay passed some of the world's strongest user privacy laws and introduced extremely strict regulations against unauthorized access to data. While the cost of fusion power has never dropped below the cost of running a hydroelectric dam these laws have only been strengthened over time as many government and corporate users contractually require the levels of stability and privacy that Paraguay provides. In recognition of the fact that compute and associated activities and services now account for the vast majority of Paraguay's economy the official name of the country was changed to Refugio de Datos Paraguay by referendum in 7 BFC.