ZoneBitcoin EditorialRussia is one of the countries with the most bitcoin mining farms in the world after the United States. Recently, Russian mining company BitCluster announced plans to expand its activities in Africa. Thus, it is expected that from the beginning of 2024, a subsidiary of BitCluster will begin its installation in Ethiopia in order to deploy its future operations there.
The project has an estimated cost of around $200 million and operations will begin in early 2024.
Creation of a 120 MW mining center in Addis Ababa
The BitCluster company has indicated that it wants to install an ultra-modern 120 megawatt (MW) data center in an area near the capital Addis Ababa. The objective of this project is to make Ethiopia a true leader in the bitcoin mining sector. The total infrastructure is expected to cover a plot of approximately 30 m000, near the Kilinto Addis Ababa power station.
It is important to note that BitCluster seeks to commit to sustainable development by seeking to power the center with sustainable energy. Thus, the new mining center will exploit the energy produced by the "Great Renaissance Dam" » (GERD). It is one of the largest hydroelectric projects built in Africa, which was commissioned in 2022. It is the GERD that will provide the energy needed for BitCluster's mining activities.
Africa becomes a welcoming land for Bitcoin miners
The project can be considered as a strategy by Russia to increase its influence in Africa. Indeed, building such a center in Africa would allow it to reduce its costs while reducing its carbon footprint, which is mainly used in Russia. It is then, from a global point of view, also interesting for the Russian economy which would then reduce its dependence on gas and oil exports.
Although there are already mining companies and farms in Africa, new projects such as BitCluster could help change the current mining landscape.Ethiopia, and of the continent in the long term. By investing in such a project, Russia promotes economic cooperation with Ethiopia which could subsequently attract more companies in the sector, and thus open up to new economic and financial opportunities. Indeed, it appears that the sector of mining can be a lever today to boost economic growth African countries.
Even more, this would make it possible to exploit the energies of the dam which are currently little used due to lack of companies. So, just like the company Gridless, based in Kenya, this would make it possible to make the cost of electricity profitable and ultimately make it more affordable for the entire population.
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