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Ethiopia’s $250 Million Tech Expansion In Bitcoin And AI

February 19, 2024
in Business
Ethiopia’s $250 Million Tech Expansion In Bitcoin And AI
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Ethiopia plans to establish a $250 million bitcoin mining and AI data center, led by the Russian bitcoin mining company BitCluster, The project is a milestone in the country’s journey towards integrating cutting-edge technologies such as bitcoin and artificial intelligence into its economic infrastructure.

Aiming to become a global digital economy leader, Ethiopia is leveraging its renewable energy sources to power the advancement of bitcoin mining and AI development. A component of this ambitious initiative is Project Mano, a plan aimed at harnessing Ethiopia’s renewable energy resources. It objective is to serve as a blueprint for integrating these technologies into Ethiopia’s economy.

The initiative involves the construction of a 120-megawatt, 30,000-square-meter facility in Addis Ababa, adjacent to the Kilinto high-voltage substation. It is strategically located to leverage Ethiopia’s vast renewable energy resources, primarily hydroelectric power from the Grand Ethiopian Renaissance Dam, Africa’s largest hydroelectric project. This sustainable approach ensures an uninterrupted power supply essential for the energy-intensive process of bitcoin mining, while also contributing to the country’s environmental goals.

The facility’s substantial capacity will support over 34,000 Antminer S21 200Th miners, adding a significant 6.8 EH/s, or approximately 1.2% of the total bitcoin network hash rate. This development underscores the growing emphasis on renewable energy in the bitcoin mining sector. It highlights the geographic diversification of mining operations to areas offering both climatic advantages and renewable energy sources.

This is seen as a game-changer for Ethiopia, aligning with the country’s broader aspirations to become a hub for technological innovation and sustainable development. By tapping into its renewable energy potential, Ethiopia aims to attract global attention and investment in its tech sector, creating new opportunities for employment, growth and development.

The choice of Ethiopia as a site for this investment reflects a growing trend among bitcoin miners to seek out locations that offer cost-effective and sustainable energy solutions and a welcoming regulatory environment.

As the Project Mano proposal highlights, Ethiopia’s initiative to integrate bitcoin mining into its economy could potentially add $2 to $4 billion annually to its GDP. This strategic move could significantly bolster the nation’s economy, enhance its technological infrastructure, and position it as a leader in the clean energy-driven future of bitcoin mining.

This development represents an important moment for Ethiopia, signaling its readiness to embrace the opportunities presented by blockchain technology and AI. As the project unfolds, it will undoubtedly draw global attention to Ethiopia’s burgeoning tech industry and its commitment to sustainable and innovative economic development.

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Copyright for syndicated content belongs to the linked Source : Forbes – https://www.forbes.com/sites/digital-assets/2024/02/18/ethiopias-250-million-tech-expansion-in-bitcoin-and-ai

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