Kraken Explores Nuclear Energy for Data Centre Stability

Kraken is exploring the potential of nuclear energy to ensure stable power for its data centres. This was revealed by the cryptocurrency exchange’s CTO, Vishnu Patankar, in an interview with CoinDesk.

The manager highlighted a sharp increase in electricity demand from the artificial intelligence and high-performance computing sectors.

Kraken also anticipates a boom in the DeFi sector and increased demand for its services as institutional adoption of digital assets grows.

“The 24/7 and global nature of cryptocurrencies means Kraken requires a constant energy supply, especially considering we handle a significant share of global trading volumes,” said Patankar.

According to him, these factors are prompting the exchange to explore how it can scale its business in terms of stable electricity access.

Kraken is considering using small modular reactors (SMRs) to power its data centres. In January 2023, the U.S. Nuclear Regulatory Commission certified the first such device in the country, paving the way for commercial use. In Russia and China, SMRs are already operational in the power grid.

The company has yet to make a final decision but is leaning towards nuclear energy, as alternatives like wind or solar generation depend on weather conditions, Patankar clarified.

Moreover, SMRs can be located directly on data centre premises, as they require little space and are unaffected by external factors.

“Backup nuclear power means Kraken can continue operations even during major local power disruptions,” Patankar noted.

The exchange is exploring the development of such projects at its facilities in North America and Europe.

Nuclear energy is already actively used by bitcoin miners like CleanSpark and TeraWulf, although they focus on stationary NPPs.