Bitcoin’s AI Renewable Synergy Goes from Digital Gold to Cloud Brains
Houston-based Lancium and Crusoe Energy Systems announced on Thursday a major deal to construct a 200-megawatts data center near Abilene to establish advanced cloud computing for AI companies.
President of Lancium, Ali Fenn told CNBC that once the project is fully ready to operate, it will one of the largest AI data centers in the world, marking a major shift from Bitcoin mining to AI.
Chase Lochmiller, Crusoe’s co-founder and CEO, said, “Data centers are rapidly evolving to support modern AI workloads, requiring new levels of high-density rack space, direct-to-chip liquid cooling and unprecedented overall energy demands.”
A Strategic Transition
Companies such as Crusoe Energy Systems specializing in Bitcoin mining can operate AI, given they have access to power and have large data centers. However, and due to the low profitability generated by Bitcoin mining, and mainly following the recent halving event, these companies are moving towards income generating investments, such as AI.
Lancium and Crusoe are part of many other Bitcoin miners that are doing that shift. Speaking of numbers, the combined value market of 14 major Bitcoin companies hit a record of $22.8 billion, partly because they decided to make the transition to the field of AI. As an example, Bit Digital, now earns 27% of its revenue through AI and has made an agreement to supply Nvidia GPUs in Iceland.
Crusoe’s technology, which is primarily designed for Bitcoin mining, also helps in the conversion of wasted energy into usable power, and this in turn aligns well with the requirements of AI infrastructure.
The new Abilene facility is expected to be operational by 2025 and will be mainly using renewable energy.
Renewable Energy and AI for Better Results
Fenn told CNBC, “Our power orchestration technology is positioned to ensure that mega-scale AI data center campuses can be assets to the grid, not liabilities,” highlighting that his company’s technology can adjust the energy demand to alleviate power grid that rely on unpredictable renewable sources, like wind and solar.
With the demand on AI constantly growing, the role of data centers in energy consumption is expected to witness a surge, potentially reaching 9% of US electricity use by 2030. Nuclear energy is also considered as a crucial component to meet this demand.
Final Thoughts
Companies such as Crusoe Energy Systems shifting from Bitcoin mining to AI are a major technological and economic transformation, highlighting the potential of sustainable growth in AI. This transition paves the way also to new opportunities, along with emphasizing the importance of integrating renewable energy into the tech sector.
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