Iceland’s extra energy to be used in crypto mining.
Bitcoin miners who worry about their carbon footprint can now turn to Iceland, as the country uses its surplus of hydroelectric and geothermal power to power mining operations.
As reported by Bloomberg, the cooler climate in the country helps with the heat from data centers, and “the Icelandic electricity system is its total isolation from the rest of the world, protecting it against global electricity price inflation,” according to Luxor Technologies, a crypto-mining service provider.
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The energy used for mining in Iceland is considered non-guaranteed power, meaning it’s unstable, and most households avoid it.
GreenBlocks is an Iceland-based data center service provider with a focus on using renewable energy in the mining and validation of digital assets and blockchain technology.
The company signed an agreement with Bit Digital, a sustainability-focused generator of digital assets from New York, to expand Bit Digital’s “mining capacity in Iceland to approximately 10.7 megawatts.”
The deal cost $4.9m and includes 2.5 MW of incremental hosting capacity, and there will be 2,800 S19j Pro+ units and 500 S19j units deployed in the facility.
Bit Digital’s CEO Sam Tabar stated:
We are pleased to expand our mining presence in Iceland and our relationship with the GreenBlocks team. <..> We see significant opportunity to further expand our presence in this region and will continue to covet locations like Iceland that have an abundance of renewable energy resources and a supportive regulatory environment.
Energy consumption is a bit of a sore subject in the crypto world. While its popularity is increasing, it costs a lot to keep the data center running. There have been instances where people used stolen energy to power mining operations, i.e. the case in Borneo.
There are also alternatives, illustrated by GDA’s new mining facility in Sweden, powered by renewable energy.