Russia has the potential to become a major player in the field of cryptocurrency mining, and experts in this field have established research to specify the region of the country’s most attractive coin mining business. The capital, Moscow, is one of the most popular mining destinations alongside the cheapest electricity sources.
Electricity bills, logistics decides Russian miners to choose the location of crypto farms
Russia has everything it needs to be a leader in the cryptocurrency mining industry, including low-cost electricity, surplus power generation capacity, and well-developed energy infrastructure in many regions. This is one of the conclusions of a study conducted by Intelion Data Systems, an importer of mining equipment cited by RBC Crypto.
Researchers at the company say interest in setting up new data centers for digital currency extraction is growing across vast countries. According to CEO Timofey Semyonov, the company’s main task is to choose the right location for the facility, which is critical to the return on capital investment. He pointed out that electricity prices and sufficient power generation are the main criteria.
Intelion Data Systems discovered in 2021 that the capital was the most popular place to host mining data centers. Moscow Moscow Oblast, Karelia, Republic of Buryatia, Sverdlovsk, Murmansk, Irkutsk Region, Krasnoyarsk region, Republic of Khakassia. In the first four regions, electricity demand was higher than the amount of locally generated electrical energy.
Industrial-scale crypto miners are leading their choices by electricity bills in the first place, and in the case of Moscow and its neighboring areas, by logistical advantages. From time to time, experts pointed out in a press release that the latter outweighs energy infrastructure as a factor. They believe that data centers need to be located in areas where not only are electricity prices relatively low, but they also generate more electricity than they consume.
The regions where the two parameters match are Irkutsk, Sverdlovsk, Murmansk, the Republic of Khakassia and the Krasnoyarsk region. The amount of electricity generated there is sufficient not only to meet current demand, but also to connect more consumers without overloading the distribution network.
The authors of the study believe that mining farms can provide an economically viable solution to take advantage of Russia’s excess power generation capacity. Cryptocurrency mining can also expand the deployment of IT infrastructure in the Russian Federation, increase budget revenues in the region, and create new jobs.
Bitcoin mining is one of the crypto-related activities still awaiting regulation in Russia, which controls nearly 5% of each month as of January 2022. Global hash rate, Estimated by the Cambridge Alternative Finance Institute. Most Moscow officials agree that the mining industry should be recognized as an industrial activity and taxed accordingly.Meanwhile, Russia’s mining sector has been hit by the United States Sanctions It was imposed on the war in Ukraine.
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