Bitcoin mining’s position with carbon-free sources, such as nuclear energy, offers huge benefits to the cryptocurrency industry as the digital asset grows in popularity, acceptance, and engagement with the broader economy.
World Nuclear News reports that Cumulus Data, a subsidiary of independent power producer Talen Energy and a manufacturer of zero-carbon data centers, has completed the installation of the first building at the nuclear-powered Susquehanna data center site in Pennsylvania.
Cumulus Data said the 1,200-acre complex will be the first of its kind in the United States when it launches bitcoin mining and cloud computing services in the first quarter of 2023.
Bitcoin Mining Goes Nuclear
A 48-megawatt, 300,000-square-foot powered shell data center is under construction, and several fiber routes are operational. The data center is powered by a direct connection to the Susquehanna nuclear power station, which has a capacity of 2.5 gigawatts.
Nuclear power has the potential to be a significant source of electricity for the bitcoin mining sector.
By providing stable carbon-free electricity, nuclear reactors will contribute to sustaining the cryptocurrency ecosystem, promoting expansion, and accelerating the adoption of bitcoin assets.
A rendering from 2021 of the data center campus next to the Susquehanna power plant (Image: Linxon/World Nuclear News)
Bitcoin mining difficulty rose 10.26% to an all-time high of 37.59 trillion on Monday, as several US-based mining companies resumed operations after being knocked offline by a snow cyclone.
Globally, cryptocurrency mining requires a lot of electricity. According to one analyst, it uses 77.78 TWh of energy, which is equal to Chile’s energy needs.
Nuclear power plants that cannot dispose of 100 percent of their electricity can use their excess energy for crypto mining to help decarbonize the sector, which environmental activists have long called for.
Bitcoin Mining Center Ready to Receive Tenants
This year, Cumulus Data CEO Alex Hernandez said the flagship Susquehanna data center site will welcome its first customers and begin commercial operations.
“We look forward to advancing our goal to solve the energy ‘trilemma’ that we define as the rapidly increasing consumer demand for zero carbon, cheap, and reliable electricity by data center customers,” Hernandez said.
Talen Energy announced in 2021 a partnership with American bitcoin mining company TeraWulf to build Nautilus Cryptomine on the site.
TeraWulf stated in a recent update that it is in the first phase to start the mining process and it is anticipated that the cryptomine will deliver 50-megawatt total mining output for TeraWulf in the first quarter of this year.
Although it may seem strange to attach a cryptocurrency data center to a nuclear power facility, CO2 emissions and rising electricity costs are very important considerations for companies with extensive data center infrastructure.
Nuclear power plants provide a constant source of zero carbon energy.
BTC total market cap at $445 trillion on the daily chart | Chart: TradingView.com
Nuclear Power & Bitcoin Mining: The Perfect Pair
A unique value proposition for both sectors is made possible by the combination of excess and carbon-free, nuclear-generated electricity.
Not only will nuclear reactors develop new revenue streams with cryptocurrency mining, but they will also help decarbonize the industry and increase bitcoin’s appeal to a group of institutional investors with environmental, social, and governance aspirations.
Vladimir Galabov, director of cloud and data center research at Omdia, stated:
“Nuclear power has a place to support data centers reducing greenhouse gas emissions.”
As of writing, Bitcoin is trading at $23,091, up 9.1% in the last seven days, data by Coingecko shows.
Featured images from Cryptoslate