US Bitfury to Build USD 35 Million Mining Center in Norway

The Bitcoin mining farm in low populated northern Norway will use renewable energy

by Kalina Tekelieva
20 March • 2 min
In News

US Blockchain technology company Bitfury said on Monday it has agreed to build an energy-efficient mining datacenter in Mo i Rana, a town just south of the Arctic Circle in northern Norway.

To set up the datacenter’s infrastructure, Bitfury will invest NOK 274 million (approximately USD 35 million).  The farm will be located at the Mo Industrial Park (MIP) and will create around 30 local jobs.

The deal was made public in Mo i Rana, where the tech firm’s CEO Valery Vavilov met with Norway’s Minister of Trade and Industry Torbjørn Røe Isaksen, Mo i Rana’s mayor Geir Waage and local business leaders.

Green energy

The Bitcoin farm will run on renewable energy provided by local energy firm Helgeland Kraft (HK). Bitfury will buy around 350 GWh of water energy annually from HK. The average power usage effectiveness (PUE) in the facility will be 1.05 or lower, which makes it one of the most efficient datacenters worldwide.

HK’s CEO Arve Ulriksen welcomed Bitfury’s focus on sustainability and said the decision to use green energy proves the tech company has a clear vision for the future.

Bitfury currently runs mining centers in Iceland and Georgia and is building a third one in Canada. All of them use renewable energy.

Norway and innovations

“Norway is a perfect match for Bitfury’s focus on innovation and growth,” Vavilov said in a statement.

The country’s government, which focuses on developing new technologies, believes that “data will become an increasingly important resource for the business community as well as for society in general”, according to Isaksen. 

“This represents a major economic opportunity for Norwegian businesses. The datacenter industry is growing fast, and provides Norway with opportunities of economic growth and new jobs,” Isaksen said.

Norway and the crypto industry

The Norwegian authorities do not regard the Bitcoin as money. They consider it an asset and profits from Bitcoin trade are subject to a 25% capital gains tax. At the same time, no other regulations concerning the Bitcoin seem to be coming into view in the Nordic country.