​Buryatia to launch a mining center with a capacity of 100 MW

What’s new? The Far East and Arctic Development Corporation (FEDC) will launch the data processing center (DPC) for mining for 900 million Russian rubles in the village of Mukhorshibir (Republic of Buryatia), RBC Crypto reports, citing the company’s press release. The center for cryptocurrency mining is scheduled to open in the first half of 2023. It is reported that it will house 30 000 rigs for energy-intensive blockchain computing with a capacity of 100 MW. The new enterprise will create about 100 jobs.

RBC Crypto’s material

What else is known about DPC? According to the publication, the construction of the mining center takes place in the priority development area (PDA) “Buryatia,” where a special legal regime is established. The company Bitriver-B (part of the BitRiver group of companies) is engaged in this with the support of FEDC.

According to Dmitry Khameruev, director of FEDC, Bitriver-B has been provided with a wide range of state support tools, including zero land and property taxes, reduced insurance premiums up to 7,6%, and a reduced rate of income tax. Once the resident’s facility is connected to the unified national power grid, the electricity tariff will be cut by about half. Khameruev said that this is one of the most important support measures for the energy-intensive enterprise.

In June 2022, BitRiver entered into a partnership with Gazprom Neft to mine cryptocurrencies using associated petroleum gas. In September, the company entered into a partnership with Yakutsk Electric Grid Company to build a data center in the Mirninsky district

In December, the authorities of the Sverdlovsk Region held talks with miners to attract investments in the project to build a data processing center, in which part of the electricity will be used for cryptocurrency mining. Deputy Governor Dmitry Ionin said that investments in the project could exceed 1 billion RUB, so only cooperation with large companies, such as BitRiver, is considered.

For how the mining industry works in Russia, read GetBlock Magazine’s special feature.