A project is underway to build two large-scale cryptocurrency mining facilities in the United Arab Emirates (UAE). Participants said that high-tech data centers will rely on a full immersion solution to cool power-hungry miners where the desert climate makes air-cooled mining unfeasible.
Advanced crypto mining facilities in Abu Dhabi to address the cooling challenges of the Arabian Peninsula
Marathon Digital Holdings, a leading US-based digital mining company, and emerging infrastructure developer Zero Two are launching what they say will be the first immersive Bitcoin mining operations in the Middle East.
In a press release providing information about the project, Marathon announced that the partners have formed a joint venture, Abu Dhabi Global Markets (ADGM), to develop and operate two new digital asset mining sites with a combined capacity of 250 megawatts.
The larger 200-megawatt facility will be located in Masdar City, the sustainability hub of Abu Dhabi, the capital of the United Arab Emirates. The detailed announcement stated that the other crypto farm, which is 50 megawatts, will be located in the Mina Zayed area.
The sites will be supplied with excess power, thus increasing the base load and sustainability of Abu Dhabi’s electricity grid. The companies also confirmed their intention to offset any unsustainable electricity used with clean energy certificates.
Cryptocurrency mining farms are already being built and mining equipment has been ordered. Both sites, which will have a hash rate of around 7 EH/s, are expected to go online early this year.
Before launching the project, Marathon Digital and Zero Two launched a pilot program to effectively establish a large cryptocurrency mining operation in Abu Dhabi, where the hot desert climate makes air-cooled mining unfeasible.
Preliminary results from the trial indicate that the operation of mining sites in the UAE is now possible thanks to Tabreed’s immersion solution ASIC Miners, specially designed by the two companies, implement proprietary software to improve their performance.
Equity ownership in the ADGM joint venture will be 80% for Zero Two and 20% for Marathon, with capital contributions in 2023 expected to be approximately $406 million. Details regarding the mining project come after analysts recently speculated that increased regulatory pressures, energy costs, and taxes in existing mining areas could lead to a new migration of cryptocurrency miners to more favorable jurisdictions.
Do you expect to see an increasing number of cryptocurrency mining facilities in the Middle East? Tell us in the comments section below.
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