Russian Region to Build 15 New Crypto Mining Data Centers in Komi Republic

The Komi Republic in Russia is planning to construct 15 new crypto mining data centers, with the first two costing $27.6 million. Backed by investors, the initiative is part of Russia broader effort to boost its crypto mining sector. The cold climate and abundant energy resources make Komi an attractive region for mining.

Russia’s push into the cryptocurrency mining sector is accelerating, with the northeastern Komi Republic announcing plans to build 15 new crypto mining data centers. This development is set to establish Komi as a significant hub for cryptocurrency mining, with the first two data centers to be constructed in the cities of Mikun and Sindor.

Initial Investment and Plans

According to a report from the Russian news agency TASS, Vladimir Uyba, the governor of Komi, confirmed that investors are backing the initiative. The first two data centers will have a combined cost of $27.6 million. While Uyba did not specify which cryptocurrencies will be mined, it is widely expected that Bitcoin (BTC) will be the primary focus, given the dominance of Bitcoin mining in Russia.

Uyba also revealed that the construction plots for the centers have already been allocated, and the project will be jointly carried out with Energoresource-K, a power firm. “The project will help us develop the IT industry and digital technologies,” Uyba said, adding that Energoresource-K is committed to long-term involvement in the venture, with plans to invest approximately 35 billion rubles ($386.2 million) into the project.

Komi’s Strategic Advantages for Mining

Komi’s cold winters and shorter summer seasons make it a favorable environment for cryptocurrency mining, reducing the cooling costs required for mining operations. Additionally, the region boasts vast reserves of oil, gas, and hydrocarbon fields, along with several thermal power plants, which ensure an abundant and stable energy supply—key factors for large-scale mining projects.

This announcement comes shortly after news that Gazprom, Russia’s state-controlled gas giant, is planning to build a 5,000-rig crypto mining center in Veliky Novgorod with a budget of $452.4 million.

Legal Framework and Future Expansion

In August, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining, which requires industrial-scale miners to register with a central authority, while smaller private miners are exempt from registration if they stay within residential energy usage limits. Putin’s government has expressed its ambition to regulate and support the burgeoning crypto mining industry, urging the creation of the necessary infrastructure for digital assets.

With Siberia traditionally being Russia’s mining hub, recent grid strains have led to stricter enforcement against illegal mining. As a result, major industrial miners are now looking for alternative regions like Komi to expand their operations.

The Komi Republic’s leadership has also hinted at further expansion, with additional mining centers planned for other parts of the region in the future.

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