Nuclear Energy to Help Crypto Miners Get to Net Zero

Data from The New York Times shows that one Bitcoin transaction uses up as much energy as a typical US household in two and a half months. An unlikely solution has emerged: nuclear energy.

In October, utility company Standard Power announced a deal with nuclear power firm NuScale to open and operate two data centers in Ohio and Pennsylvania. The two modular reactors there will generate 2 gigawatts of clean energy.

The next frontier for power

According to Andrew Burchwell of the Ohio Blockchain Council, nuclear energy could be the next frontier for community power. It is a clean, safe, and environmentally friendly energy source.

The first nuclear-powered Bitcoin mining facility opened earlier this year in the US. The zero-carbon facility was launched by Cumulus Data in northeastern Pennsylvania. When it becomes fully operational, it is expected to generate 475 megawatts of energy for Bitcoin mining company TeraWulf.

Crypto mining is becoming prevalent in rural America

Small American towns are attracting crypto mining firms due to their combination of lax zoning rules, cheap electric power, and China’s 2021 ban on crypto mining, which drove these companies to seek greener pastures elsewhere.

Most of the 20 or so public mining firms in the US operate in small towns. They produce a total of 4.25 gigawatts of mining capability.

So far, some cryptocurrency miners have been able to reduce their carbon footprint by capturing methane or buying carbon offsets. The industry has pledged to become net zero by 2030.

The critics speak

Critics believe financial and other issues could thwart the planned projects. Alex de Vries of the Vrije Universiteit Amsterdam commented that the relatively high cost of nuclear power could render it an unsuitable choice for a sector “that has to keep electricity costs as low as possible to merely ensure survival.” NuScale Power called this claim speculative and factually baseless.