The leading power producing company in Kenya (KenGen) is planning to sell excess geothermal power to bitcoin miners. Bitcoin mining is very intensive process and consumes a lot of energy. Selling excessive energy to the bitcoin miners will also increase the companies revenues at the same time reducing risks.
This could attract large scale crypto mining companies to Kenya . It will entail miners setting up operations at the Olkaria site to reduce transmission costs as KenGen seeks to maximose it sales and reduce over-reliance on Kenya Power as the only client. According to the company, miners have been reaching out to them about buying it energy.
The communication lead for Masinga Data Centre said Crypto Mining needs a lot of cheap electricity which does not pollute the environment , which will also need a lot of water. Crypto mining has become a major concern over whether mining is causing more carbon emissions and developers have been pushing a shift in favour of proof of stake rather than proof of work which needs a lot energy to mine bitcoins and cryptocurrencies.
According to Cambridge’s Bitcoin Electricity Consumption Index, Kenya currently houses no known Bitcoin mining operations, but it appears to be ideal for miners due to the region estimated potential 10,000MegaWatts (MW) of geothermal energy capacity.
In other news, a US based hostiong company Cloudnoon reportedly secured 6 billion Kenyan shillings(about $51.1 million) for the project. MAS101 data centre, as it will be known, is to be constructed near the electric power generating company KenGen’s five hydro power plants situated in the seven Forks area along the lower part of the Tana River in Masinga, Eastern Kenya.
The data center is set to powered by both hydro power and an on-site 10MW solar power plant cooled by water based technology MAS101 will be located within a secure 10-acre campus, separate from the solar farm. This capacity and efficency,the data center is expected to be the largest green data centre in Africa and generally in the whole world.