A new initiative in the United Arab Emirates (UAE) aims to construct two large facilities for cryptocurrency mining. These advanced data centers will use a special cooling method called full immersion due to the hot desert climate, which makes traditional air cooling impractical for mining operations.
- Cutting-Edge Crypto Mining Centers in Abu Dhabi Overcome Cooling Challenges in Arabian Peninsula.
Marathon Digital Holdings and Zero Two, prominent companies in the cryptocurrency mining and blockchain infrastructure sectors, are collaborating to establish the first immersion-based bitcoin mining operations in the Middle East.
Marathon Digital Holdings and Zero Two have joined forces to create a partnership called Abu Dhabi Global Markets (ADGM). ADGM aims to develop and operate two new sites for digital asset mining in the Middle East. These sites will have a combined capacity of 250 megawatts (MW), as stated in Marathon’s press release.
The partners plan to build a 200 MW mining facility in Masdar City, which is known for its focus on sustainability. Additionally, a smaller 50 MW crypto farm will be constructed in the port zone of Mina Zayed, as mentioned in the announcement.
The mining sites will utilize surplus energy, which will help enhance the stability and sustainability of Abu Dhabi’s power grid. The companies have made it clear that they aim to compensate for any non-sustainable electricity consumption by obtaining clean energy certificates.
The construction of the crypto mining farms has already begun, and the necessary mining equipment has been ordered. Both sites, with a combined computing power of around 7 EH/s, are anticipated to become operational as early as this year.
Prior to initiating the project, Marathon Digital and Zero Two conducted a pilot program to assess the effectiveness of a large-scale crypto mining operation in Abu Dhabi. The purpose was to determine if the hot desert climate would pose challenges for air-cooled mining methods.
The preliminary findings from the pilot program demonstrate that it is now possible to operate mining sites in the UAE by utilizing a specially designed immersion solution to cool the ASIC miners. Marathon Digital and Zero Two developed custom-built hardware and utilized proprietary software to enhance the miners’ performance and efficiency.
Zero Two will hold an 80% equity ownership in the ADGM joint venture, while Marathon will have a 20% ownership. Both companies are expected to contribute approximately $406 million in capital for the project in 2023. These details emerge at a time when analysts have forecasted a potential shift of crypto miners to more favorable jurisdictions due to increased regulations, energy expenses, and taxes in current mining hotspots.
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