Canadian company HIVE Digital Technologies to Build 100MW Data Center in Paraguay
One of the leading cryptocurrency miners, HIVE Digital Technologies, has announced plans to construct a new 100-megawatt data center in Paraguay. The decision was made following negotiations with Paraguay’s President Santiago Peña, where the company emphasized the country’s stable fiscal policy and transparent energy pricing as key factors in choosing the location.
Environmentally Friendly Energy and Expansion
The new data center will utilize eco-friendly energy from the Itaipu hydroelectric power plant. HIVE has also acquired 500 additional S21 Pro Antminers to further enhance its operations. The facility is anticipated to add up to 6.5 exahashes per second (EH/s) to the company’s global hash rate, bringing it to 12.1 EH/s. This expansion will solidify HIVE’s position in the bitcoin mining sector and support the global shift towards sustainable energy solutions.
Commitment to Eco-Friendly Mining
HIVE has expressed its commitment to minimizing environmental impact, outlining eco-friendly mining as part of its strategy. The company predicts that the construction of the data center will generate over $100 million in stable income for Paraguay over the next three years.
Challenges in the Industry
Despite the positive outlook, the HIVE project coincides with a conflict between the Paraguayan government and local mining companies regarding a proposed increase in electricity tariffs. Representatives, such as Jimmy Kim from the Chamber of Digital Asset Mining (Capamad), have raised concerns that a 16% tariff hike could lead to the closure of up to 70% of legally operating mining companies, impacting the nation’s economy and employment.
This project showcases both the investment opportunities and challenges present in the cryptocurrency industry in Paraguay.
