The state-owned Corporation for the Development of the Far East has revealed plans to set up a crypto mining facility in Buryatia, an East Siberian republic and member of the Russian Federation.
According to reports, the new mining facility will have a capacity of 30,000 mining machines, staff 100 employees, and consume 100 megawatts of electricity from the grid.
The facility is expected to be operational in the first half of 2023 and will be owned and operated by BitRiver, Russia’s leading provider of cryptocurrency mining co-location services.
Dmitry Khameruev, director of the KRDV Buryatia, claims that the Bitriver-B company, which is establishing one of the most significant enterprises to accelerate the growth of Buryatia’s digital economy, has received considerable backing from the government, including reduced property and land taxes, a 7.6% decrease in insurance premiums, and lower income tax rates.
One of the most crucial assistance measures for an energy-intensive company, according to Khameruev, is the electricity price reduction that would follow after the resident’s facility is connected to the unified national power grid.
The report confirmed that power equipment supplies have started and that the data center’s buildings and structures are under construction. The project is expected to generate 100 new jobs and contribute to the growth of Buryatia’s digital economy.
Gazprom Neft, a state-owned gas company, has partnered with BitRiver to provide natural gas-generated electricity. As a result of the partnership, BitRiver is developing digital infrastructure in the oil fields where Gazprom supplies flare gas to cryptocurrency mining operations.
Russia offers tax incentives to businesses that invest in cryptocurrency mining, and the new $12 million facility in East Siberia will receive direct support from the government.
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