Sazmining to begin Bitcoin mining in Paraguay

A U.S.-based hosting provider for Bitcoin miners that runs entirely on renewable energy, Sazmining, will launch a new operation in Paraguay.

The facility is slated to open in September. It will use excess electricity generated by the Itaipu hydroelectric power plant, with a capacity of 14 GW.

According to the statement, Sazmining will offer hosting in the data centre for 1,600 mining rigs at a rate of $0.047 per kWh — less than 30% of the cost of hosting equipment in the United States. In January, the company launched its first data centre at a hydroelectric dam in Wisconsin.

Sazmining positions Paraguay as an “ideal location” for eco-friendly mining.

“Using excess electricity, Bitcoin mining effectively turns losses into a profitable venture for the country. Paraguayan policymakers and the local energy provider ANDE have welcomed this new activity,” said Kent Halliburton, president of Sazmining.

Paraguay co-built Itaipu with Brazil, which financed the project. After commissioning one of the world’s largest dams with 20 turbines, the country found itself with excess generating capacity. It sells the surplus electricity to Brazil at a loss.

Earlier Luxor named Itaipu as the main factor behind the appeal of the country for Bitcoin miners.