July 24, 2024
Indiana Data Centers and Crypto Miners
Finance

Indiana Lures Data Centers, Crypto Miners with Low-Cost Power

Commitment to Low-Cost Power and Water

Indiana lawmakers have assured major corporations of “ample amounts” of low-cost power and water to attract and support data centers and cryptocurrency mining operations in the state. This initiative aims to draw investments from large companies like Meta, Amazon, Google, and Microsoft, as well as the cryptocurrency mining firm AboutBit, which has either invested in or plans to build facilities in Indiana.

Financial Incentives and Limitations

While Indiana offers financial incentives to various organizations, AboutBit and other cryptocurrency miners are excluded from these state programs. In May, Amazon revealed plans to invest $11 billion in Indiana. Governor Eric Holcomb remarked on Amazon’s confidence in the state’s ability to provide necessary resources, saying:

“[Amazon] wouldn’t have made the commitment without the confidence that we could supply both the power and the water.”

Commerce Secretary David Rosenberg, who heads the Indiana Economic Development Corp., echoed this sentiment, emphasizing that the state has “ample amounts of both” power and water.

Transforming Power Stations for Sustainable Mining

AboutBit has repurposed a 50-year-old power station into a sustainable, liquid-cooled cryptocurrency mining facility. This facility operates next to the Merom Generating Station in Indiana. As of May 28, U.S. Bitcoin miners have collectively spent $2.7 billion on electricity in 2024.

Paul Hoffman, an analyst at Best Brokers, highlighted the significant energy consumption of Bitcoin mining:

“Since the start of 2024, Bitcoin mining in the U.S. has consumed an enormous 20,822.62 GWh of electric power.”

Hoffman noted that the average commercial electricity rate of $0.1281 per kWh amounts to a total expenditure of $2,667,378,196.47. Before the Bitcoin halving in April, mining one BTC required 407,059.01 kilowatt-hours (kWh) of electricity, costing around $52,144.26. Post-halving, the electricity needed has surged to 862,635.55 kWh, with a cost of approximately $110,503.61 at average commercial rates.

Sustainable energy usage is on the rise.

Sustainable energy use in Bitcoin mining has reached an all-time high of 54.5%, according to the Bitcoin ESG Forecast in January. The report highlighted a 3.6% increase in sustainable mining practices throughout 2023. Hoffman illustrated the potential impact of Bitcoin mining energy consumption, explaining:

“This amount of energy could charge every electric vehicle in the U.S. 87.52 times or power 1,983,107 households for a year, which is 1.51% of all U.S. households.”

Promising Future 

Indiana’s strategic promise of ample low-cost power and water resources is designed to attract data centers and cryptocurrency mining firms. While financial incentives are not extended to all, the state’s abundant resources and commitment to sustainable energy have positioned it as a favorable location for significant investments from major corporations and innovative cryptocurrency mining operations.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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