Russia Ramps Up Crypto Mining with New Data Centers in Komi Republic
Russia's push into cryptocurrency mining is gaining momentum, as the northeastern Komi Republic plans to construct 15 new crypto mining data centers. According to TASS, regional governor Vladimir Uyba revealed that the first two centers will be built in Mikun and Sindor, with a combined cost of $27.6 million. These projects, backed by investors, signal Russia's continued focus on expanding its mining infrastructure.
While Uyba didnât specify which cryptocurrencies will be mined, most Russian miners traditionally focus on Bitcoin. The new data centers will leverage Komi's abundant energy resources, including its oil, gas, and thermal power plants, making it an ideal location for mining operations, particularly given its cold climate, which is favorable for cooling the mining rigs.
Komi, not yet known as a major crypto hub, is looking to capitalize on its energy resources to draw more mining activity. The collaboration between the Komi Republic and power firm Energoresource-K marks a significant investment in the region's IT and digital technology sectors, with Energoresource-K committing approximately $386 million to the project.
In addition to the initial centers, the region plans to expand its data processing centers to other cities, positioning Komi as a rising player in Russiaâs mining ecosystem. This move comes on the heels of a report that state-owned gas giant Gazprom is also investing in a crypto mining subsidiary, planning a 5,000-rig mining center in Veliky Novgorod by 2028 with a budget of $452 million.
These developments follow Russian President Vladimir Putin's recent signing of a law legalizing cryptocurrency mining, pushing for regulation and infrastructure to support the industry. I guess all the sanctions didn't hit Russia heavy enough as they're just building new income streams!
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