Russia plans to install Bitcoin mining center in Addis Ababa

Russia 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 is committed to sustainable development by seeking to power its facility with sustainable energy. The new mining facility will utilize energy generated by the Grand Ethiopian Renaissance Dam (GERD), one of the largest hydroelectric projects built in Africa, which was commissioned in 2022. The GERD will provide the energy required for BitCluster's mining operations.

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 mining companies and farms already exist in Africa, new projects like BitCluster could contribute to changing the current landscape in Ethiopia and, in the long term, across the continent. By investing in such a project, Russia is fostering economic cooperation with Ethiopia, which could subsequently attract more companies in the sector, thus opening up new economic and financial opportunities. Indeed, it appears that the mining sector can be a lever for boosting the economic growth of African countries.

Furthermore, this would allow for the exploitation of the dam's energy resources, which are currently underutilized due to a lack of companies. Thus, much like the Kenya-based company Gridless , this would make it possible to recoup the cost of electricity and ultimately make it more affordable for the entire population.

See also :

• Bitcoin mining: An engine for growth?
• The Mano project or how Bitcoin can transform Ethiopia?
• Taxas: A welcoming land for Bitcoin miners