Faced with massive energy demand from high-performance computing and artificial intelligence companies that are changing the landscape for energy stability, Kraken is considering using nuclear power to ensure stability. for your data center.
In an exclusive interview with CoinDesk, Vishnu Patankar – Chief Technology Officer (CTO) of cryptocurrency exchange Kraken – said the company is considering using nuclear energy to power its your data center. This statement comes amid predictions of a decentralized finance (DeFi) boom and growing demand for Kraken's services.
According to Mr. Patankar, Kraken has no plans to build nuclear reactors itself but is considering collaborating with nuclear power suppliers with small modular reactors (SMRs). These reactors can be co-located with data centers and are not limited by space or weather.
“As organizations move to digital assets and operations taking place on the blockchain, the need for reliable fiat gateways continues to grow,” said Kraken CTO. “Enhancing our energy resilience means we strengthen a direct path into the crypto ecosystem, supporting its continued growth.”
Additionally, the cryptocurrency exchange is looking to secure its energy supply as a spike in demand from AI and high-performance computing (HPC) companies is changing the landscape for stability. energy. Currently, Kraken is exploring nuclear energy options in North America and Europe.
“The global nature and constant activity of cryptocurrencies means Kraken needs a constant supply of energy, especially as we facilitate a larger proportion of global trading volume ”, Mr. Patankar said.
Given the need to operate a cryptocurrency business 24/7 and the anticipation of mass cryptocurrency adoption over time, Kraken is looking at ways to scale its business in terms of energy supply and late.
Kraken cryptocurrency exchange (Illustration)
Kraken's move comes as a growing number of tech companies seek deals with nuclear operators to power data centers to meet the demands of artificial intelligence. . The Wall Street Journal reports that this trend is increasingly evident, with companies including Amazon Web Services looking to sign contracts with nuclear power plants to power data centers.
Soaring demand from energy-hungry AI companies has seen Bitcoin miners shift from mining cryptocurrencies to providing infrastructure for them. Core Scientific (CORZ) signed a deal with artificial intelligence company CoreWeave earlier this month.
Using a nuclear backup solution means Kraken can continue to operate even during major disruptions to local energy supplies so it can continue to provide products and services 24/7 to our customers globally.”
Whether running nodes for validators or for transactions, Mr. Patankar said Kraken is expecting a big boom in DeFi and because of this, the company's energy needs are likely to be higher. exponentially in the future.
Although a final decision has not yet been made, Kraken will certainly consider nuclear power as an option as other alternatives such as wind and solar power depend on weather and storage. Energy also poses challenges.
The cryptocurrency industry is often criticized for being energy-intensive and environmentally controversial, especially blockchains that use Proof-of-Work consensus mechanisms like Bitcoin. However, in this case, nuclear energy may be a more environmentally friendly solution. Excess energy generated by the reactor can be recovered and used to power the data center's cooling system.
