Bitcoin
Indiana Promises Reliable Power to Attract Crypto Miners
Indiana lawmakers have committed to providing substantial low-cost energy and water resources to large corporations with the aim of attracting data centers and cryptocurrency mining operations to the state.
The allure of broad utility companies has already caught the attention of tech giants like Meta, Amazon, Google and Microsoft, as well as cryptocurrency mining company AboutBit, which have invested or plan to build facilities in Indiana.
Incentives for Tech Giants, Innovation for Crypto Miners
Although Indiana offers financial incentives to several organizations, these benefits do not extend to AboutBit and other cryptocurrency miners.
This distinction has not stopped AboutBit, which innovatively converted a 50-year-old power station into a sustainable, liquid-cooled cryptocurrency mining facility adjacent to the Merom Generating Station.
In a notable development in May of this year, Amazon declared an $11 billion investment in Indiana. Governor Eric Holcomb highlighted the state’s ability to meet the substantial utility needs of such a project, emphasizing that Amazon’s decision was influenced by ensuring sufficient power and water supplies.
Echoing this sentiment, David Rosenberg, Secretary of Commerce and head of the Indiana Economic Development Corp., confirmed the state’s readiness to provide these critical resources.
Crypto Miners join the growing list of data center tenants in Indiana. Source: Indiana Capital Chronicle
The cryptocurrency sector, especially Bitcoin mining, has presented significant energy demands. Analyst Paul Hoffman of Best Brokers reported that as of May 28, 2024, Bitcoin miners in the US spent $2.7 billion on electricity.
Since the beginning of the year, the industry has consumed 20,822.62 GWh of electrical energy. With the average commercial electricity tariff standing at US$0.1281 per kWh in February, this consumption translates into a huge financial expense.
Putting Bitcoin’s Energy Consumption in Perspective
Energy requirements for Bitcoin mining increased after the halving in April. Before the halving, mining one Bitcoin required 407,059.01 kilowatt-hours (kWh), costing around US$52,144.26.
After the halving, the energy required nearly doubled to 862,635.55 kWh, with the cost rising to approximately $110,503.61 at current rates.
Hoffman further illustrated the scale of this energy consumption, noting that it could charge all electric vehicles in the US 87.52 times or power nearly two million homes for a year, representing 1.51% of all US homes.
Additionally, January’s Bitcoin ESG forecast revealed that sustainable energy use in Bitcoin mining has reached a new peak of 54.5%, with a 3.6% increase in sustainable mining practices throughout 2023.