Cryptocurrency mining company DeMi has announced a new partnership with data center provider BitCluster to grow its infrastructure deployment in Ethiopia.
At the end of December 2023, BitCluster announced the launch of a 120 megawatt data center in Ethiopia with a total area of 30,000 square meters. This power capacity allows for over 30,000 mining machines such as the Antminer S21 200Th model to be supported, according to managers of the data centre.
The BitCluster facility utilizes Ethiopia's geothermal and hydroelectric energy resources. The price of electricity sourced from these renewable options in Ethiopia is 0.049 dollar per kilowatt-hour - a competitive rate for mining operations.
As part of the agreement, DeMi will leverage BitCluster's new data center location. Over 500 of DeMi's mining rigs have already been set up at the site, representing a total hash power of 59 petahash.
Over the past year, Ethiopia has seen a rapid increase in cryptocurrency mining investments and partnerships between global mining operators and local data center providers.
Recent disclosures from the Ethiopian Electric Power corporation (EEP) illustrate the scale of expansion underway. A total of 25 international firms have applied to EEP seeking large-volume electricity supply specifically for data centers and mining facilities. Four are already operational, generating over two million dollars in foreign exchange earnings for EEP.
The majority of investors are Chinese crypto mining giants attracted by Ethiopia's low-cost hydro energy. EEP's mandate for payment in hard currency such as dollars aims to convert computing power into tangible foreign exchange.