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    BitRiver Unveils Plans for 100MW Crypto Mining Hub in Russia

    In the region of Eastern Siberia, BitRiver, the largest producer of industrial crypto-mining solutions in Russia, has revealed plans to build a new data centre of 100MW in capacity.

    A daughter company of the organization, BitRiver-B is undertaking the building of a new complex, marked as an energy-related data processing centre.

    Implementation plans for the centre to start operation will be done in the latter part of 2024.

    BitRiver: Subsidiary Builds New Plant in Russia’s Far East

    According to reports from RBC, the company revealed that the facility’s main purpose will be focused on cryptocurrency mining.

    BitRiver-B has announced plans to invest more than $15.15 million in the construction of a new data centre situated in Buryatia. This region is known for its diverse landscape of mountains and shares a border with Mongolia to the south.

    According to the media source, Sergei Bezdelov, who heads the Industrial Mining Association (APM), described the new facility as the biggest data centre not only in the Republic of Buryatia but also in the Far Eastern Federal District.

    In 2022, the head of the mining industry announced that the construction of the centre had officially started. Additionally, the firm has shared pictures showcasing the progress of the building project on the premises.

    Bezdelov insisted that the large investment project for the Far East and all of Russia would push forward, despite the company being added to the US Treasury’s sanctions list.

    In April 2022, Washington included BitRiver on its list of sanctioned Russian companies. Nevertheless, the CEO of the company stated this year that after the next BTC halving event, mining Bitcoin in Russia would be significantly more lucrative than in the USA.

    According to Igor Runets, the head of BitRiver, Russia has one of the most environmentally friendly energy balances globally.

    According to him, this is because the country has a large proportion of hydroelectric and nuclear power facilities.

    In addition, Bezdelov mentioned that the company planned to hire around 120 highly skilled professionals for the upcoming centre.

    He stated that the mining company is also looking to nurture young talent at the new centre.

    Authorities stated that a major company specializing in artificial intelligence technology visited the construction site to evaluate its potential for addressing AI challenges.

    Officials stated that the AI vendors, who remained unidentified, arrived sometime in the middle of February.

    More Growth Forecasted – But Political Woes Continue

    The association predicts that high-performance and energy-intensive computing in Russia could require several tens of gigawatts by the year 2035.

    The new BitRiver-B data centre will focus on advanced computing that requires a high level of energy consumption, as stated by the company.

    The APM announced that it would engage in activities such as mining, providing cloud services, and delivering various advanced digital services.

    BitRiver and Bezdelov are passionate about crypto mining in Russia, but the future of this industry still hangs in the balance.

    The National Central Bank has consistently advocated for the prohibition of any activities related to cryptocurrency, such as mining.

    Over the last few months, the bank has displayed a willingness to find common ground with industrial miners.

    Nevertheless, the bank is adamant about miners offloading their coins promptly through foreign exchanges.

    The potential for money laundering schemes is believed to increase with this action, according to law enforcement officials.

    On the other hand, the energy ministry is looking to increase electricity tariffs for industrial miners. The APM cautions that raising costs may diminish Russia’s competitiveness in the international crypto-mining industry.

    Frequently Asked Questions: 

    Is BitRiver’s latest data center project in Russia completed?

    BitRiver-B, the first arm of the market leader in industrial crypto mining services in Russia, BitRiver, is tilting towards establishing a top-class data centre with a capacity of 100MW in Eastern Siberia.

    Is it possible to inform us of the anticipated launch date for the new data centre?

    In the latter part of 2024, the organization will initiate activities at the newly established centre.

    Can you provide information on the location of the facility and the investment amount from BitRiver-B?

    BitRiver-B has announced plans to invest more than $15.15 million in establishing a data centre in Buryatia.

    What goal does the new data centre aim to achieve?

    The main task of the centre is to mine cryptocurrency, mostly due to high-powered energy-consuming computing.

    In what way does BitRiver continue with the project while being on the list of sanctions issued by the US Treasury?

    In 2022 construction on the structure started, and we have helped our customers of the Far East region and Russia in general carry out the major investment program.

    As CEO of BitRiver, how does Igor Runets view the profitability of Bitcoin mining in Russia with that of the US?

    Next Bitcoin halving event will make it more beneficial mining Bitcoin in Russia rather than in the United States, says Runets.

    What is the reason behind Runets placing importance on Russia’s sustainable energy practices?

    Runets credits Russia’s favourable energy balance to its heavy reliance on hydroelectric and nuclear power generation.

    BitRiver intends to hire a specific number of experts for their upcoming facility. How do they plan to support and develop emerging talent?

    The company’s goal is to hire around 120 top-tier experts for the new centre while also focusing on developing young talent.

    Is there any interest from AI technology vendors in the new data centre?

    In mid-February, one of the leading global hardware vendors specializing in artificial intelligence technology visited the location to evaluate its potential for addressing AI challenges, as stated by authorities.

    Despite BitRiver’s ambitious growth plans, what obstacles lie ahead for the future of crypto mining in Russia?

    Russia’s Central Bank wants to completely outlaw any involvement in cryptocurrency, including mining. But there might be some room for negotiation with big mining operations, who could be allowed to sell their coins on foreign exchanges as long as they meet certain terms. The energy ministry is also thinking about hiking up electricity prices for these large miners, which could hurt Russia’s standing in the worldwide crypto-mining scene.

    Credit: https://assets.cmcmarkets.com/images/cryptominersbakery.png

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