Indiana plans to become a hub for the data center and crypto mining industries by promising uninterrupted, low-cost energy.

Indiana's Appeal to Data Centers and Crypto Mining Operations

Indiana lawmakers have assured mega-corporations of ample low-cost power and water, aiming to attract and serve data centers and cryptocurrency mining operations in the state. Major companies like Meta, Amazon, Google, Microsoft, and the cryptocurrency mining firm AboutBit have either invested in or plan to build facilities in Indiana.

While Indiana provides financial incentives to organizations, it is notable that AboutBit and other cryptocurrency miners are not eligible for these state programs.

Data Centers for Financial Benefit

Amazon announced in May an $11 billion investment in Indiana. Indiana Governor Eric Holcomb emphasized the state's capability to meet the power and water demands, saying:

“[Amazon] wouldn’t have made the commitment without the confidence that we can supply both the power and the water.”

Commerce Secretary David Rosenberg, head of the Indiana Economic Development Corp., supported this claim by stating the state has "ample amounts of both" power and water.

AboutBit has converted a 50-year-old power station into a sustainable liquid-cooled cryptocurrency mining facility, currently operating next to the Merom Generating Station in Indiana.

Bitcoin Mining Energy Consumption

As of May 28, 2024, U.S. Bitcoin miners have spent approximately $2.7 billion on electricity. Paul Hoffman, an analyst at Best Brokers, highlighted the immense energy consumption:

“Since the start of 2024, Bitcoin mining in the U.S. has consumed an enormous 20,822.62 GWh of electric power. At the average commercial electricity rate of $0.1281 per kWh as of February, this amounts to an expenditure of $2,667,378,196.47.”

Before the Bitcoin halving in April, mining one BTC required 407,059.01 kilowatt-hours (kWh) of electricity, costing approximately $52,144.26. Post-halving, the electricity required to mine one BTC has increased to 862,635.55 kWh, costing around $110,503.61 at average commercial rates.

Hoffman illustrated the significant energy consumption:

“This amount of energy could charge every electric vehicle in the U.S. 87.52 times or power 1,983,107 households for a year, which is 1.51% of all U.S. households.”

Sustainability in Bitcoin Mining

The Bitcoin ESG Forecast in January revealed that sustainable energy use in Bitcoin mining has reached an all-time high of 54.5%, with sustainable mining increasing by 3.6% overall during 2023. This trend towards sustainability is crucial as the industry continues to grow and integrate more renewable energy sources.

Conclusion

Indiana's strategic positioning with ample low-cost power and water is attracting significant investments from major corporations and data centers. While cryptocurrency mining operations like AboutBit are also being established, they do not qualify for the same financial incentives. The state's commitment to providing the necessary resources and the growing emphasis on sustainable energy use in Bitcoin mining reflect the broader trends and challenges within the industry.