AI and Bitcoin Mining Meet in New Texas Data Center

Utilized Digital, a blockchain and synthetic intelligence (AI) infrastructure supplier, has opened its new 200-megawatt (MW) knowledge heart in Backyard Metropolis, Texas.

The power marks the corporate’s third blockchain internet hosting facility to go dwell in North America.

“As soon as totally energized, this location will deliver Utilized Digital to the complete deliberate 480MW of complete internet hosting capability throughout its blockchain internet hosting services,” learn the corporate’s announcement on Friday.

A megawatt (MW) is a unit of energy equal to 1 million watts, whereas a gigawatt (GW) equals one billion watts. Riot Blockchain, one other publicly traded Bitcoin miner, boasts a 1GW mining facility in the identical state

For context, a typical house mild bulb is powered by 60 watts. In the meantime, Cambridge estimates that your entire Bitcoin community at present calls for 14.83 GW, up from its 12.89 GW estimate in September.

What Bitcoin Miners Are Doing to Survive the Bear Market

Bitcoin miners use such energy to provide hashes, that are wanted to assemble the community’s subsequent block of transactions, for which miners are rewarded with newly minted BTC.

In response to Bitinfocharts, Bitcoin’s present hashrate is roughly 400 exahashes per second (EH/s). An exahash equals one quintillion hashes.

“Relying on the mannequin of miners, the power will assist 7-8.5 EH,” Utilized Digital Chairman and CEO Wes Cummins advised Decrypt.

None of that hashrate is supposed for the corporate itself, nevertheless. Cummins mentioned his agency solely hosts “different miners,” that means different firms personal the rigs that Allied homes and operates on their behalf. This enterprise allowed Utilized Digital to earn $22 million in income in the course of the quarter ending in Could 2023.

But like many mining companies, Utilized Digital is popping its focus away from Bitcoin mining and towards high-performance computing (HPC)—one other energy-intensive service supporting the AI business.

Bitcoin Miners Are Pivoting in Search of Income—And Hedging Their Bets

Like mining, HPC requires entry to giant knowledge facilities, cooling programs, and low-cost power to function profitably. In response to HIVE Digital Analysis Director Adam Sharp, HPC-cloud companies are “much more worthwhile per unit of power” than Bitcoin mining.

“We’re focusing all new growth on HPC/AI workloads,” mentioned Allied’s Cummins.

But it surely appears traders aren’t satisfied—at the least not but. Utilized Digital inventory, which trades on the NASDAQ beneath the APLD ticker, fell 5.3% on Friday.

Edited by Stacy Elliott.

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