Indiana Courts Tech Giants and Crypto Miners with Promises of Ample, Cost-effective Resources
Summary:
Indiana lawmakers are promising abundant and economical resources to attract data-centers and cryptocurrency mining enterprises. Companies like Meta, Amazon, Google, Microsoft, and the crypto mining company AboutBit are investing or planning to invest in Indiana. However, crypto miners, like AboutBit, do not qualify for the state's financial incentives. High electricity consumption of Bitcoin mining, reaching $2.7 billion in 2024, is also noted. Lastly, the use of sustainable energy in Bitcoin mining is increasing and has reached a record high.
Promises of abundant, cost-efficient power and water supplies are being made by Indiana legislators in a bid to lure data centers and cryptocurrency mining enterprises to the area. Big-name corporations such as Meta, Amazon, Google, and Microsoft, along with AboutBit, a cryptocurrency mining company, have either made investments or have plans to establish their operations there. Though financial incentives are offered by Indiana, firms like AboutBit involved in cryptocurrency mining don't qualify for these state initiatives. As of June 2024, multiple data centers are operational in Indiana.
In a financial benefit move last May, Amazon confirmed its intent to inject $11 billion into Indiana projects. Indiana Governor Eric Holcomb remarked on the situation, claiming that the company's investment commitment highlights their confidence in the state's ability to provide sufficient power and water resources. David Rosenberg, the Commerce Secretary and head of the Indiana Economic Development Corp., echoed these sentiments, emphasizing the state's robust water and power provisions.
AboutBit has given a new lease of life to a 50-year-old power station, transforming it into an efficient, liquid-cooled cryptocurrency mining operation located adjacent to the Merom Generating Station in Indiana.
Based on figures available since May 28, American Bitcoin (BTC) miners have shelled out $2.7 billion on electricity in 2024 alone. Paul Hoffman, a market analyst with Best Brokers, pointed out the colossal energy consumption by Bitcoin mining in the U.S., totalling an astronomical 20,822.62 GWh since the beginning of the year. At the average commercial electricity rate of $0.1281 per kWh, he tallied the total cost at a whopping $2,667,378,196.47.
Before the Bitcoin halving in April, mining a single Bitcoin demanded about 407,059.01 kWh of electricity, racking up costs around $52,144.26. Post-halving, the electricity usage needed to mine a single Bitcoin surged to 862,635.55 kWh, resulting in an average commercial cost of about $110,503.61.
Hoffman elaborates that with this kind of energy, it would be possible to charge all the electric vehicles in the U.S. 87.52 times over or power nearly two million households for an entire year - equivalent to powering 1.51% of all American households.
In sustainable mining developments, the Bitcoin ESG Forecast reported a new record high of 54.5% in sustainable energy utilization for Bitcoin mining as of January. During 2023, there was an overall 3.6% rise in sustainable mining.
Published At
6/11/2024 1:02:07 PM
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