Uruguay’s conflict over tariffs prompts a Tether migration towards Brazil

Tether Holdings Ltd. has refuted recent reports suggesting it is abandoning its $500 million investment in data centers and renewable energy projects in Uruguay, clarifying that ongoing disagreements over electricity tariffs are the reason for the delays, not a full exit. The firm, working through its partner Microfin, had already put over $100 million into running

mining operations in Florida and Tacuarembó departments, with intentions to develop three data centers and a 300 MW renewable energy facility. Nevertheless, by July 2025, tensions with state-owned utility UTE escalated when two of Tether’s mining sites lost power due to nearly $5 million in unpaid energy bills. has since explained that pausing the project is a calculated choice, prompted by the lack of a “stable, competitive tariff structure suitable for projects of this magnitude,” rather than solely the result of the power disruption.

This dispute illustrates the difficulties faced by large, energy-dependent businesses in tightly regulated markets. Tether had pushed for bulk-rate electricity prices and long-term pricing guarantees to support its significant infrastructure plans, but talks with UTE had stalled for almost two years. Although UTE and Microfin signed a memorandum of understanding in June 2025 to address the outstanding debt, the agreement failed because the payments were not made. Tether stressed that its decision to shift its focus is a strategic adjustment, not a project failure, and it is redirecting its efforts to Brazil through a new partnership with Adecoagro, a company majority-owned by Tether. This new initiative aims to combine agriculture, energy, and technology, reflecting a move toward more sustainable and economical mining approaches.

Uruguay’s strong reliance on renewable energy—about 95% of its power comes from non-fossil sources—initially made it appealing for cryptocurrency mining. However, the challenges faced by Tether highlight how fragile such investments can be when regulatory clarity and competitive pricing are lacking. The cancellation of the project has not only set back Uruguay’s hopes of becoming a data infrastructure leader in the region but also cast doubt on its ability to draw and keep industries with high energy demands. Experts point out that while Uruguay’s clean energy mix helps stabilize costs, it does not protect investors from risks like unpaid bills, contract disputes, and the absence of flexible energy pricing for large users.

Tether expects to finish scaling down its business in Uruguay by the end of this year, with no plans for new investments under current circumstances. The company has also stated that it is still communicating with Uruguayan officials, but will not pursue its original project as things stand. This move mirrors broader regulatory trends in the U.S., where the Trump administration’s crypto-friendly stance—including a recent executive order broadening digital asset options in 401(k) plans—has fostered a more welcoming climate for digital currencies Tether to Leave Uruguay Over Power Costs and Tariff Impasse [ 4 ]. For Uruguay and similar countries, Tether’s experience serves as a reminder of the importance of stable energy pricing and clear regulation to attract and sustain large-scale digital infrastructure investments.