Embracing regulators has become a critical part of the Bitcoin mining business, as governments worldwide largely overlook the role of data centers in supporting grid stability and even the transition to clean energy sources.
In an exclusive interview with Cointelegraph editor Sam Bourgi during the ‘Proof of Work Summit’ in Germany, Aydin Kilic, president and CEO of the mining firm Hive Digital, shared the company’s strategy to overcome regulatory hurdles and expand its footprint in renewable energy.
“There’s this completely facetious outlook on the industry where we’re energy robbers,” said Kilic, adding that miners are, in fact, the “ideal customers” of energy companies. He explained:
“We can turn down our consumption in a matter of seconds when we get a signal from the utility company. […] When you need to balance the grid and have a brownout like in Texas, it’s very hard for them to suddenly flash up secondary and tertiary sources of power, which are very expensive to run.”
However, if the primary energy production is already running, Bitcoin miners can immediately reduce their energy usage when requested, allowing that power to be redirected to other parts of the grid in a matter of seconds, according to the executive.
“If they [utility companies] say: Mister Bitcoin Miner, can you shut down because I’ve got to service the grid? We can do it in seconds.”
Hive has been engaging with regulators at different levels to educate them on how data centers may bring economic development while supporting energy grid stability, particularly as renewable sources add volatility to grids.
Kilic said the company has invested in its relationship with municipal, provincial, and federal governments in Sweden, Canada and Paraguay. While authorities usually welcome data centers at the local level, at other levels, there are still misconceptions.
“When we were building our flagship facility in New Brunswick, the mayor came down and I actually met him. He was so thrilled that we were bringing so much business in terms of investment in the community jobs. Now, at the provincial or state level, that’s where there’s a little bit more of a disconnect because those politicians and policymakers don’t see the benefit to the community.”
A good example of this can be found in Sweden, where authorities updated the National Energy and Climate Plan 2021-2030 to revoke some subsidies for data centers as part of a long-term environmental strategy.
“It’s so important to educate politicians on the virtue of Bitcoin mining as an energy consumer,” noted the executive.
Hive’s strategy to address regulatory shifts also includes looking for countries with renewable energy sources to add green Bitcoin to its balance sheets while still supporting grids’ stability.
In July, the company announced plans to build a 100-megawatt mining site in Paraguay, which is expected to more than double its mining hashrate.
“Paraguay is a great frontier. It’s an immense opportunity for us. It’s all hydro energy, and we’d like to be leaders in grid balancing,” said Kilic.
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