Genesis Digital Assets Limited (GDA), a prominent mining and data center company with over 400 MW of power generation worldwide, has recently opened a new hydro-powered Bitcoin (BTC) mining data center in Sweden. The strategic location of the data center in the far North of Sweden was chosen due to the country’s abundant renewable energy surplus, especially in hydroelectric power.
With a total capacity of approximately 8 MW, the data center is expected to generate a hash rate of around 155 PH/s (peta hashes per second). GDA revealed that there are currently 1,900 Bitcoin mining machines deployed in the Porjus data center. It’s worth noting that Sweden produces nearly all of its electricity from nuclear and hydropower, particularly in the northern regions where renewable energy is most abundant.
Abdumalik Mirakhmedov, the executive president and founder of GDA, explained that the data center’s proximity to the Porjus Hydroelectric Power Station ensures that all electricity consumption will be powered by renewable energy. This aligns with GDA’s commitment to utilizing clean energy sources for its operations.
This move by GDA reflects a broader trend in the Northern European Bitcoin mining landscape, which has seen a growing interest in utilizing untapped, stranded, and renewable energy sources due to their cost-effectiveness. Christian Anders, the founder of Swedish Bitcoin exchange BT.CX, highlighted the surplus of energy and negative energy prices in Sweden, Finland, and Norway. These countries primarily rely on renewable energy, particularly hydropower, which is found in remote locations that pose challenges for energy distribution.
While sentiment towards Bitcoin mining is not universally positive, particularly among some Scandinavians, energy companies are beginning to recognize the utility of Bitcoin mining. The CEO of Sweden’s largest energy producer, Vattenfall, supports Bitcoin mining and acknowledges its use case for grid balancing. A similar trend can be observed in the United States, where stabilizing electricity grids with Bitcoin miners is becoming increasingly popular.
Tim Carra, the head of Nordic at GDA, emphasized Sweden’s favorable conditions for mining Bitcoin, including abundant energy sources, a pro-innovation environment, and a strong educational system that fosters a culture of innovation. GDA, which primarily operates in Texas with a 300 MW consumption facility, views Sweden as one of the best countries globally for Bitcoin mining and plans to further invest in the region.
As the generation of new Bitcoins requires significant amounts of electricity, the carbon footprint of Bitcoin mining has been a cause for concern. However, it is important to note that Bitcoin mining consumes less than 0.7% of global energy, equivalent to 149.95 Terawatt hours per year, according to the Cambridge Center for Alternative Finance. Furthermore, renewable energy, particularly hydroelectric power, continues to dominate the global Bitcoin mining energy mix.
In conclusion, GDA’s establishment of a hydro-powered Bitcoin mining data center in Sweden highlights the country’s favorable renewable energy surplus and its attractiveness as a mining destination. The inclusion of renewable energy sources aligns with the industry’s increasing focus on sustainability. As more miners choose Nordic European countries for their operations, the region is poised to play a significant role in the future of Bitcoin mining.
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