The total computing power of BitCluster’s data center in Norilsk could potentially reach about 1% of the Bitcoin network’s total hashrate. This was disclosed to ForkLog by the company’s founder, Vitaliy Borshenko.
The planned electrical capacity of the data center is 31 MW. According to Borshenko, this will allow housing up to 12,000 Antminer S19 devices with a hashrate of 110 TH/s and a consumption of 2.5 kWh.
“The total computing power of these ASIC miners will be 1.32 EH/s, which corresponds to roughly 1% of the Bitcoin network’s total hashrate,” Borshenko said.
Although the digital assets law “On Digital Financial Assets” has not yet come into force, BitCluster has not faced legal difficulties in opening the data center in Norilsk.
“While the prospect of a possible ban on mining and crypto business in general has undoubtedly affected investor and client sentiment,” the company acknowledged.
Vitaliy Borshenko stressed that clear legal regulation and taxation will help attract clients and investors, including from abroad.
“We are ready for taxation of the industry and have said so many times. We are now creating jobs and paying taxes within the framework of current law,” he added.
In 2019, BitCluster analysts calculated that, considering existing electricity reserves, the creation of a “crypto valley” in Russia could potentially bring in up to 70 billion rubles annually, solely from VAT on consumed electricity.
The company’s calculations were based on the power consumption of a single Antminer S9i ASIC miner, which is 1.3 kWh. The electricity surplus in Russia of 20 GW, according to 2018 data, would allow deploying 14.8 million devices of that type.
The BitCluster data centre at the site of the closed Norilsk Nickel plant in Norilsk will operate as a “mining hotel”. Its first client will become a Chinese firm, the name of which is not disclosed.
To supply electricity, BitCluster signed a direct contract with the Norilsk-Taymyr Energy Company.
The “On Digital Financial Assets” law, which will take effect on 1 January 2021, does not contain a direct ban on issuing cryptocurrencies. However, amendments to the document prepared by the Russian Ministry of Finance forbid miners from receiving cryptocurrency as remuneration.
ForkLog in detail discussed in what this means for the industry.
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