Riot Blockchain develops an infrastructure with an initial capacity of 400 MW.
The company plans to acquire land, prepare the site and install electrical substations.
Since its inception, Bitcoin (BTC) mining has been an activity that largely depends on state power grids. In the United States, a mining company decided to expand its network and will create an electrical substation, through which they will take even more advantage of the energy they use to mine.
Riot Blockchain, one of the largest Bitcoin mining companies in the world, brought such a plan to light. As they put it, They seek to erect a data center with an installed capacity of more than 1 GW of power. It is an adaptation of their systems to take energy in a better way.
In a Press releaseRiot, based in Texas, United States, announced that they had begun the development of an expansion of their operations, with the construction of an infrastructure capable of transmitting enough energy to execute large-scale Bitcoin mining in Navarro County , in the same state.
This plan is conceived as a way to abandon less efficient practices and could aim to improve the use of available electrical energy, in a way that causes the least impact on surrounding communities.
The interesting thing is that, for this whole project, the Bitcoin mining company plans to acquire land, prepare the site and develop electrical substationswhich will serve to supply energy.
They also plan the construction of electrical transmissions and buildings (or sheds), some auxiliary ones and others that will use the cooling mining technology promoted by the American company.
The origin of the energy is not clear, but they do indicate that they will take advantage of the electricity that travels through the Navarro Line, with a voltage of 345 kV and which is located 380 meters from where the plant will be. It will be then when the substations are regulated and established at levels suitable for Bitcoin mining.
A phased project
The project will be completed in phases. In a first round, the installation of a mining farm with an initial capacity of 400 MW is intended of power This, they say, will take place on a plot of just over 1 square kilometer. There the operations of hosting and immersion refrigerated mining, something planned for July 2023.
Riot says this first phase will create about 270 direct jobs and drive “positive economic change” for Navarro County. According to the company’s own estimates, an expense of USD 333 million is expected for the completion of this first phase. This will be invested in the rest of the current year, 2022, 2023 and the first three months of 2024.
Once the installation of the first phase is finished, The plan will follow and the capacity will be increased to 1,000 MW or 1 GW.
At that time, “Riot’s developed capacity will total 1.7 GW, establishing the company among the largest Bitcoin mining operations in the world,” according to Riot CEO Jason Les.
At the level of large power plants
Riot’s project, which involves a plant with a huge amount of energy available to mine Bitcoincan be compared to the power tested in various power plants around the world.
For example, the Riot complex in Navarro will have more power than a nuclear reactor at the Palo Verde plant in the US, one of the largest power plants in the North American country. In general, each reactor has a capacity of 1,270 MW, for a total of 3.8 GW.
The mining center may also be contrasted with the Surgut-2 natural gas plant in Russia, which has an installed capacity of 5.5 GW. Likewise, it can be compared with the Hanbit nuclear power plant in South Korea, whose capacity is 5.8 GW.
The fact is that Riot proposes a complex that, in itself, could supply energy to an entire city, but its power will be used to generate bitcoins.
This is important, as it would prevent the central Texas grids from being overloaded by a mining operation of this size, which could cause blackouts and other failures. Instead, they plan to install a power plant that could even energetically assist the neighboring community of Navarroprovided that the mining company so decides.
A well-known strategic partnership
According to Riot, to achieve the expansion presented, they will partner with the Priority Power company, with which they already have a history. It was this company that contributed to the development of the Whinstone facility, one of the largest Bitcoin mining farms in the world.
According to Riot, Priority Power will have to manage the development of the complex, interconnect with utilities, make power purchase agreements and flex power charging. It is worth clarifying that this company is dedicated to energy services related to Bitcoin mining.
For Chad Harris, who is the CEO of Whistone, the plans of Riot, which is the wholly owned subsidiary of that plant, are a “key example” of the positive environmental, social, and economic impacts that Bitcoin mining brings to underdeveloped regions of the United States.