Ukraine wants to mine bitcoin alongside its nuclear power plants

Ukraine is investing heavily in bitcoin. The country has decided to embark on cryptocurrency mining by backing data centers to its nuclear power plants!

Credit: VIN JD, Pixabay
Credit: VIN JD, Pixabay

The Ukrainian government plans to build data centers close to its nuclear factories in order to store official archives and also… to mine cryptocurrencies. A first data center will be created next to the Zaporizhia plant, the largest in Europe. The mining process will require 250 to 500 megawatts (MW) initially, but its needs will grow to 2 to 3 gigawatts (GW) eventually.

Several data centers specializing in mining

It was the H2 company that was charged by the authorities with the construction of this data center, against a check for 700 million dollars. The work should be completed during the summer of 2022. And it is not finished, since the country has also ordered data centers for four other of its nuclear power plants, for a total consumption of 2 GW for the activity of mining.

Backing up a data center to a nuclear power plant makes some sense. The two buildings can share the same cooling source, and then the data center can easily harness the energy produced by the plant. The costs associated with the transmission of electricity are kept to a minimum.

With these facilities, Ukraine could benefit from the upward wave of cryptocurrencies and in particular bitcoin which has broken record on record recently. Be careful, however, the volatility is very high, it is a bet on the future. But the government does not require a license to mine bitcoin and plans to tax crypto earnings by 5%.

The country is not the only one to have embarked on this niche, China also operates data centers specializing in mining, with capacities similar to the Ukrainian project. Cryptocurrency mining is a complex process that requires a lot of computing power and also consumes a lot of energy. This is not without asking serious questions about the consequences of the process on the environment.

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