FameEX Hot Topics | Middle East Desert Set to Host Large-Scale Immersion Cooled Crypto Mining Farms for Bitcoin Extraction

A groundbreaking project is underway in the United Arab Emirates (UAE) to establish two large-scale cryptocurrency mining facilities. These high-tech data centers will utilize a full immersion cooling solution to tackle the challenges posed by the desert climate, which makes traditional air-cooled mining impractical. Marathon Digital Holdings, a prominent American crypto mining company, and emerging blockchain infrastructure developer Zero Two are collaborating on this endeavor to create the Middle East's inaugural immersion-based Bitcoin mining operations.

To facilitate this initiative, the partners have established a joint venture named Abu Dhabi Global Markets (ADGM). The project entails the development and operation of two new digital asset mining sites with a combined capacity of 250 megawatts (MW), as announced by Marathon in a press release. The larger facility, with a capacity of 200 MW, will be built in Masdar City—an eco-friendly hub situated in the UAE's capital city of Abu Dhabi. The second site, with a capacity of 50 MW, will be located in Mina Zayed, a port zone.

The mining farms will utilize surplus energy, thereby contributing to the stability and sustainability of Abu Dhabi's power grid. Furthermore, both companies have pledged to offset any non-sustainable electricity usage by employing clean energy certificates.

Construction is already underway, and the necessary mining equipment has been ordered. It is anticipated that both facilities, which will collectively boast a hash rate of approximately 7 EH/s, will become operational as early as this year.

Before embarking on this ambitious project, Marathon Digital and Zero Two conducted a pilot program to assess the feasibility of large-scale crypto mining in Abu Dhabi. The preliminary results demonstrated that immersion cooling solutions, combined with custom-built ASIC miners and proprietary software for optimization, have made mining operations viable in the UAE's hot desert climate.

In terms of equity ownership, Zero Two will hold an 80% stake in the ADGM joint venture, while Marathon will have a 20% stake. Capital contributions for 2023 are projected to amount to approximately $406 million.

These details emerge at a time when industry analysts predict a potential shift of crypto miners to more favorable jurisdictions due to increasing regulatory pressures, energy costs, and taxes in existing mining hotspots. The establishment of cutting-edge mining facilities in the UAE signals the region's ambition to become a prominent player in the cryptocurrency mining sector.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.