Genesis Digital Assets Limited (GDA), a prominent player in the mining and data center sector with a global power generation capacity of over 400 MW, has launched a new data center in Sweden. The move capitalizes on Sweden’s surplus of renewable energy resources, particularly hydroelectric power. The data center, situated near the Porjus Hydroelectric Power Station in the northern part of the country, aims to operate entirely on renewable energy sources due to its close proximity to the hydroelectric station.
Green Energy and Impressive Capacity
The newly established data center possesses an approximate capacity of 8 MW, contributing to an expected hash rate of around 155 PH/s. The facility accommodates 1,900 Bitcoin mining machines, all contributing to the network’s computational power. Sweden’s reliance on nuclear and hydropower for electricity generation, particularly in its northern regions, underscores the availability of abundant and clean energy sources.
Genesis Digital Assets’ strategic move aligns with a broader trend observed in Northern European Bitcoin mining. Sweden, along with Finland and Norway, possesses surplus energy reserves, at times resulting in negative energy prices. These countries primarily harness renewable energy, particularly hydropower. The region’s remote locations pose challenges in energy distribution, favoring the establishment of energy-intensive operations like Bitcoin mining.
Renewable Energy: A Mining Advantage
The preference for untapped, stranded, and renewable energy resources for Bitcoin mining is driven by their cost-effectiveness. Sweden’s ample supply of clean energy further bolsters its attractiveness as a mining destination. The utility of Bitcoin mining is gaining traction among energy companies for grid balancing, a sentiment shared by the CEO of Vattenfall, Sweden’s largest energy producer.
The confluence of abundant energy resources, a pro-innovation ethos, and a robust education system make Sweden an optimal location for Bitcoin mining. GDA’s investments in the region, along with existing operations in Texas and South Carolina, emphasize the untapped potential of mining across diverse global destinations.
Balancing Energy Intensity with Green Initiatives
While Bitcoin mining is often criticized for its energy consumption, it accounts for less than 0.7% of global energy use. The prevalence of renewable energy sources, particularly hydroelectric power, continues to dominate the energy mix of global Bitcoin mining. Norway, for instance, contributes 1% of the Bitcoin hash rate while relying entirely on renewable sources. GDA’s environmentally conscious Swedish installation adds to this growing trend.
The influx of miners into Nordic European countries is viewed as a positive stride towards achieving sustainable Bitcoin mining. As the industry seeks to strike a balance between energy-intensive operations and ecological concerns, the collaboration between Bitcoin miners and renewable energy sources bodes well for the region’s mission.