Intelion, a prominent Russian supplier of crypto mining equipment, is eyeing a significant investment of over $130 million to develop artificial intelligence (AI) data centers, according to recent reports from Russian media outlet RBC. The move underscores a strategic shift towards diversification beyond traditional crypto mining operations.

Headquartered in Moscow, Intelion is gearing up to allocate up to 12 billion Russian rubles, equivalent to over $130 million, towards the acquisition of server equipment for the establishment of AI data centers. Maxim Vyaznikov, Head of Intelion Cloud, disclosed the ambitious investment plans, signaling the company's commitment to venture into the burgeoning AI sector.

Despite facing challenges such as the 2022 ban imposed by the U.S. Department of Commerce on the sale of Nvidia's A100 chips to Russia and China, Intelion has managed to secure servers equipped with these cutting-edge chips. This acquisition positions Intelion at the forefront of AI infrastructure development in the region.

The proposed computing infrastructure will be housed at a state-of-the-art data center currently under construction in the Samara region. Anticipated to commence operations in the fourth quarter of 2024, the initial phase of this facility represents a substantial investment of over 4 billion Russian rubles, approximately $44.7 million, slated for deployment over the next two and a half years.

Previously recognized for its focus on importing mining rigs, Intelion's strategic pivot towards AI-related cloud services reflects a broader trend observed among Russian companies exploring the expanding AI industry. By leveraging its existing resources and expertise, Intelion aims to capitalize on the growing demand for AI-driven solutions.

The move by Intelion mirrors similar initiatives within the Russian crypto mining sector. BitRiver, a notable Bitcoin mining company subject to OFAC sanctions, is poised to launch an AI-centric data center in Russia during the latter half of 2024. With an expected capacity of 100 megawatts, this data center underscores the industry's convergence towards AI-driven technologies as a means of diversification and growth.

As Intelion and other players within the Russian crypto mining ecosystem embark on their respective ventures into AI data centers, the landscape of both industries stands poised for transformation, driven by innovation and strategic investments in cutting-edge technologies.