GCC can have big role in bitcoin mining’s green energy-driven future

Strong government support, an abundance of capital, and a commitment to sustainability set the region apart

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Published: Mon 2 Sep 2024, 6:00 AM

Last updated: Mon 2 Sep 2024, 4:43 PM

As bitcoin mining undergoes major changes, the GCC region can have an important role in the transformation, which is being driven by a focus on renewable energy and new technology.

Abdumalik Mirakhmedov, executive president of GDA, one of the world’s largest bitcoin mining companies in terms of hash rate, says strong government support, an abundance of capital, and a commitment to sustainability are positioning the region as a growing force in the sector.

“Governments across the region are demonstrating enthusiastic support for the growth of bitcoin mining, recognizing its potential to drive broader sector development,” said Mirakhmedov, speaking from GDA’s Dubai office. “They are ramping up their green energy initiatives in a move that could propel the region to the forefront of sustainable bitcoin mining, and potentially secure a significant portion of the network’s hash rate.”

The UAE’s estimated 400 megawatts of bitcoin mining represent around four per cent of the global bitcoin mining hashrate, according to data from the Hashrate Index. The Oman government’s investment of more than $800 million in crypto-mining operations has also been widely reported.

“A common misconception about bitcoin mining is its purported dependence on fossil fuels and consequent environmental impact, but this outdated view no longer reflects reality,” said Mirakhmedov. “Current data shows that renewable energy sources now power more than 55 per cent of all bitcoin mining operations globally. Hydroelectricity, wind, and even captured methane gas have become go-to power sources for mining operations. This shift isn’t temporary, but indicative of a long-term trend, as renewable energy costs continue to decline, making them the obvious choice for miners worldwide,” he added.

Meanwhile, the adoption of advanced cooling technologies, such as liquid and immersion systems, promises to revolutionise operations, boosting energy efficiency and reducing costs. “As these technologies become more widespread, they’ll further enhance the sustainability of mining practices,” says Mirakhmedov.”

“While bitcoin mining strives to reduce its carbon footprint further, there are other benefits resulting from the industry’s ingenuity.

“In Sweden, for instance, the excess heat from mining rigs is being used to warm greenhouses and de-ice vehicles, turning what was once waste into a valuable resource. This kind of innovation will help secure the industry’s future, and the GCC region can play a big part in that.”

One of the world’s most experienced industrial-scale bitcoin mining companies, GDA operates 20 data centres across North America, South America, Europe, and Central Asia.