Russian Bitcoin mining solutions provider, BitСluster, has unveiled its plans to build a 120-megawatt (MW) data center in Ethiopia. The facility is scheduled to go live this month and will be situated in Addis Ababa at the Kilinto high-voltage substation.

With a total area of 30,000 square meters, the data center aims to meet the engineering and technical requirements of state-of-the-art mining equipment. Notably, the entire electricity supply for the facility will be derived from renewable energy sources, specifically the Grand Ethiopian Renaissance Dam, Africa's largest hydropower project boasting a capacity of 5.15 GW.

“Ethiopia, with its hydropower potential, will undoubtedly become a new place of attraction for global mining,” co-founder of BitCluster Sergey Arestov predicted.

The recently upgraded energy infrastructure of the Kilinto high-voltage substation will ensure uninterrupted power supply to the data center, with an expected uptime of 99%. BitCluster can serve as a full-cycle service center for repairing faulty mining devices, resulting in cost and time savings. This helps boost mining efficiency.

A solution to Russia’s mining dilemma

Despite being the second largest mining power in the world, crypto mining remains illegal in Russia, forcing miners to seek opportunities outside the country. Last year, Russian regulators proposed a bill to legalize crypto mining and allow miners to export their crypto like other commodities. However, the Central Bank of Russia only permits the sale of mined cryptocurrencies on foreign platforms and to non-residents.

The construction of BitClusters' crypto mining hub in Ethiopia not only signifies the emergence of a budding crypto mining industry on the continent but also highlights the significance of renewable energy in driving sustainable mining practices in Africa. For instance, Kenyan startup Gridless specializes in establishing hydro and solar mini-grids for bitcoin mining. They utilize residual energy to provide affordable electricity to rural communities, showcasing the potential for renewable energy to power both the mining industry and local communities. Similarly, Nigeria’s bitcoin mining company runs a 500KW hydro-powered bitcoin mining facility in Nigeria.