Indiana intends to establish itself as a central location for the crypto mining and data center sectors by guaranteeing uninterrupted, cost-effective energy
Indiana lawmakers have guaranteed mega-corporations “ample amounts” of low-cost electricity and water to attract and serve data centers and cryptocurrency mining operations in the region.
Meta, Amazon, Google, and Microsoft, as well as the cryptocurrency mining firm AboutBit, have either invested in or intend to invest in constructing their facilities in the state.
Although Indiana offers financial incentives to organizations, AboutBit, and other cryptocurrency producers are not eligible for these state programs.
Data facilities for financial gain
Amazon’s announcement in May of its intention to invest $11 billion in Indiana prompted Indiana Governor Eric Holcomb to issue the following statement:
“Amazon would not have committed unless they were confident in our ability to provide both the power and the water.”
Furthermore, the Indiana Economic Development Corp.’s chief, Commerce Secretary David Rosenberg, stated that the state possesses “ample quantities” of water and power.
AboutBit had converted a 50-year-old power station into a sustainable liquid-cooled cryptocurrency mining facility. Adjacent to the Merom Generating Station in Indiana, it is currently operational.
The energy consumption of bitcoin mining has resulted in miners spending $2.7 billion on electricity this year.
Paul Hoffman, an analyst at Best Brokers, stated that Bitcoin mining in the United States has utilized an immense 20,822.62 GWh of electric power since the beginning of 2024.
As of February, the average commercial electricity rate is $0.1281 per kWh, translating to a total expenditure of $2,667,378,196.47.
Before the April halving of Bitcoin, the cost of mining one BTC was approximately $52,144.26, which amounted to 407,059.01 kilowatt-hours (kWh) of electricity.
The electricity required to mine one BTC has increased to 862,635.55 kWh since the halving, costing approximately $110,503.61 at average commercial rates.
Hoffman elaborated, “This quantity of energy could power 1,983,107 households for a year or charge every electric vehicle in the United States 87.52 times, equivalent to 1.51% of all U.S. households.”
In January, the Bitcoin ESG Forecast disclosed that sustainable energy utilization in Bitcoin mining has reached a new all-time high of 54.5%, with sustainable mining increasing by 3.6% in 2023.