Crypto miners flock to Brazil on major clean energy surplus
Crypto miners are looking to use Brazil’s clean energy surplus without putting a strain on the grid.
- Crypto miners are looking to exploit the overabundant clean energy in Brazil
- Tether is among the companies that are looking to leverage surplus power
- Brazil is experiencing a glut of solar and wind power due to subsidies
Crypto mining might solve a peculiar problem with renewable energy. Mining firms are negotiating contracts with Brazilian power companies, looking to exploit the oversupply of clean energy, according to a September 30 report by Reuters.
At least six crypto mining firms are now negotiating contracts to use a portion of Brazil’s abundant green energy for crypto mining. For instance, renewable energy supplier Renova is investing in a $200 million mining project in Brazil’s northeast. This project will feature six data centers powered by a wind farm.
Crypto mining works well with green energy
Brazil has made a big push in renewable energy. However, wind and solar energy have the disadvantage that their peak production often does not track demand. On the other hand, crypto miners can scale their operations at will, benefiting from cheap energy. At the same time, they can scale back when energy demand is high.
Brazil’s oversupply of green energy comes from years of government subsidies in wind and solar power. However, in some areas, this has led to oversupply, and some energy facilities now waste 70% of the energy they generate.
You May Also Like
US Federal Reserve leads central banks across the world into rate easing period
Grayscale debuts first Ethereum and Solana ETFs offering staking rewards
