Taiwan, Paraguay sign MOU on sovereign AI computing center investment

Taipei, May 8 (CNA) Taiwan and Paraguay signed a memorandum of understanding (MOU) Friday on joint investment in a sovereign AI computing center in Paraguay, part of an effort to deepen cooperation on technology and digital infrastructure.

The MOU was signed at the Presidential Office in Taipei following bilateral talks between President Lai Ching-te (賴清德) and visiting President Santiago Peña of Paraguay, who earlier in the day was welcomed to Taiwan with military honors.

According to the Presidential Office, the initiative aims to combine Taiwan's AI capabilities and Paraguay's abundant green energy resources. Lai said the project would "transform electricity into computing power critical for smart nations."

The agreement was one of three bilateral cooperation documents inked in Taipei and witnessed by Lai and Peña. The other two were a treaty on mutual legal assistance in criminal matters and an MOU on cybersecurity cooperation.

In his remarks during the meeting, Lai said the Republic of China (Taiwan's official name) and Paraguay, which have had diplomatic ties since 1957, should "continue strengthening cooperation and move forward together" as members of the "global democratic value chain."

Taiwan would officially open its market to Paraguayan poultry imports following negotiations between the two sides, Lai said, adding that bilateral trade ties had grown increasingly close in recent years.

Peña, meanwhile, reiterated Paraguay's support for Taiwan's international participation and condemned what he called China's "increasing military exercises" and growing "economic pressure" against Taiwan.

He also criticized what he called Beijing's economic coercion aimed at disrupting Lai's planned overseas visits to diplomatic allies, referring to the cancellation last month of Lai's trip to Eswatini after several countries reportedly denied overflight permission.

The Paraguayan leader, who is leading a delegation to Taiwan until Sunday, said the AI computing center project and a planned Taiwan-Paraguay University of Technology reflected Paraguay's ambition to become a regional technology hub.

Following the signing ceremony, Lai awarded Peña the Order of Brilliant Jade with Grand Cordon, Taiwan's highest honor decoration conferred upon heads of state of allied countries.