Russia, in collaboration with its biggest crypto mining company, BitRiver has announced plans to build crypto mining data centers in BRICS countries.
The BRICS nations, Brazil, China, South Africa, India, and Russia are now part of the Russian government’s effort to float its mining and digital infrastructure on a global scale.
The deal will be monitored by the country’s sovereign wealth fund the Russian Direct Investment Fund (RDIF). The new development and its details were announced at the recent BRICS Business Forum in Moscow on October 18.
Both entities want to utilize the country’s rich computing power, crossing borders and tapping into cryptocurrency and artificial intelligence (AI). With this, the government will be able to stake a claim as one of the world powerhouses in data center infrastructure and AI.
Russia backs BitRiver’s big move into BRICS nations
BitRiver currently runs 21 data centers located in strategic areas in the country, with a plan to construct 10 more. However, the company’s CEO Igor Runets has confirmed the decision to move into BRICS nations showing the appetite for expansion.
In his statement, Runets clarified that the company together with the RDIF will be focusing on the creation of an infrastructural base that will be made for crypto mining. He noted that they will construct a data center and equip it with the appropriate capacity as it will help them deploy and implement AI projects.
The next bone of contention to note is why the centers will be built in BRICS nations. It is simply because there is a shortage of energy-intensive data centers globally and crypto centers need a lot of energy. There are also not enough places that can provide enough energy while supporting the centers with the needed infrastructure.
This area is where Russia’s help comes through, providing more experience to build data centers for crypto and AI technology. Although details of a deal with BRICS nations are not public knowledge at this point, Russia has always been keen to explore the area.
The RDIF also wants to use this development to help the country grow its shares in the computing market. RDIF CEO Kirill Dmitriev noted that they are looking into increasing the potential of the facilities with the possibility of scaling the technology in readiness for the BRICS markets. However, the development is dependent on future-proofing.
A new global power shift?
The RDIF has been tasked to lead the BRICS Business Council’s financial services and investment working group, trying to create a joint investment platform.
Its goal is to ensure that high-tech industries like crypto and AI technology in the BRICS nations are greatly developed. The group believes that they would be able to scale their GDP to about $370 billion annually.
Russia’s shift towards crypto is not secret. Although the country has made public statements calling for caution in dealing with it, it has put a lot of money on it. Moscow is also ready to put its weight behind mining to help it drive economic growth. The Energy has also clarified that miners will be provided with enough energy, showing that the country could be in it long term.
Russia’s sanctions and its need for crypto
With the BRICS summit currently taking place in Kazan, Russia, crypto is one of the topics being discussed. Lawmakers are opining that miners could sell their assets to international investors, with the miners taking crypto as a means of payment. This could help the country bypass some of its sanctions.
Russia has been hard hit by the sanctions, but it could have a lifeline with the use of crypto, which acts as an alternative to bank transactions and dollars.
United States economist and professor emeritus at the University of Massachusetts Amherst Richard Wolff believes that the BRICS momentum is gaining ground. Referencing America’s global dominance decline, he noted that the country is on its way down but still trying to hold on.
Wolff noted that the United States has lost wars in Vietnam, Afghanistan, and Iraq. He also said that despite the United States’ unconditional support for Israel, it is unlikely to maintain control over the region in the long run. Wolff added that BRICS countries are also gaining ground on the United States economically.
Brazil President Luiz Inacio Lula da Silva is a prominent absentee from the ongoing BRICS summit. Sidelined due to health reasons, he is expected to join the others via a video call.
The post Russia partners with BitRiver to build crypto mining data centers in BRICS nations first appeared on Coinfea.
