⚡️ Bloomberg: AI Is Already Wreaking Havoc on Global Power Systems

Bloomberg published a long article about, many challenges foreseen and discussed within the Bitcoin mining industry, and how the exponential growth of artificial intelligence (AI) is placing unprecedented demands on global power systems.

“Globally, there are more than 7,000 data centers built or in various stages of development, up from 3,600 in 2015.”

“These data centers have the capacity to consume a combined 508 TWh of electricity per year if they were to run constantly. That’s greater than the total annual electricity production for Italy or Australia.”

“By 2034, global energy consumption by data centers is expected to top 1,580 TWh, about as much as is used by all of India.”

The exponential growth in AI-driven data demands is not just straining current power supplies but also reshaping global energy strategies. Data centers, particularly in AI hotspots like Virginia and Johor, face unprecedented challenges in securing adequate electricity to meet burgeoning demand.

This surge underscores the urgency for substantial investments in renewable energy infrastructure to power these facilities sustainably.

The article also highlights the intricate balance between technological advancement and environmental responsibility. As AI models grow in complexity, so does their hunger for power, necessitating innovations in energy-efficient hardware and cooling systems to curb carbon footprints.

The data center industry's evolution towards larger, more energy-intensive facilities necessitates collaborative efforts between tech giants, governments, and energy providers to foster a resilient energy ecosystem. Ultimately, navigating this era of digital acceleration requires a strategic approach to energy management that supports both technological innovation and sustainable development goals."

Link to read the article and see the visual

🏈 Why The U.S. Should Focus On Bitcoin Mining Policy

Sean Stein Smith, professor and contributor to Forbes, discusses the importance of the United States focusing on Bitcoin mining policy.

The U.S. should prioritize Bitcoin mining policy for several compelling reasons:

• Firstly, it presents an opportunity to bolster domestic economic growth through investment in a burgeoning sector.

• Secondly, by fostering a favorable regulatory environment, the U.S. can attract and retain talent and capital, positioning itself as a global leader in blockchain technology.

• Thirdly, strategic focus on Bitcoin mining can stimulate innovation in energy infrastructure, promoting sustainable practices.

• Lastly, amid geopolitical shifts and the rise of digital currencies, clear and proactive policy can ensure national security and regulatory oversight, safeguarding against potential risks while harnessing the benefits of cryptoassets for the broader economy.

⛏️ In the News

Recent developments in Bitcoin include MicroStrategy's acquisition of an additional 11,931 BTC for approximately $786.0m. This acquisition was funded using proceeds from convertible notes and excess cash.

Bitcoin's price fell below $64,000, resulting in over $27m in long liquidations within 24 hours, part of a broader $132m crypto market sell-off. Analysts cite uncertainty amid major holders selling over $1b recently, contrasting with bullish views expecting a rebound towards $100k.

JP Morgan: In June, U.S.-listed Bitcoin miners reached a record market cap of $22.8b, surpassing Bitcoin's performance due to investor enthusiasm following Core Scientific's partnership with CoreWeave. Despite a slight decline in network hashrate, U.S. miners increased their global share to around 23.8%, indicating strong sectoral growth.

Meanwhile, Marathon’s new Energy Harvesting business unit has launched a district heating project in Finland, providing heat to 11,000 homes in our first heat reuse project at scale. Impressively, this initiative has already generated bitcoin.

Additionally, the International Business Times has highlighted Bitcoin mining as a potential pathway to achieving "net zero by 2050".

Bitcoin miners are currently holding the smallest amount of Bitcoin on record since February 2010, with reserves dropping to 1.9 million bitcoin as of June 19, down from 1.95 million bitcoin at the start of the year, according to data from IntoTheBlock. Despite holding fewer BTC, the fiat value of these reserves has remained near an all-time high of approximately $135b, indicating a strategic shift towards financial stability rather than accumulating Bitcoin in the long term.

🏦 Iris Energy Investor Presentation

CEO Daniel Roberts held a Zoom call with 200 investors last week. Here are some highlights.

👁️‍🗨️ Iris Energy today:

• 260MW of data centers across 4 sites (3 BC, 1 TX), scaling to 510MW in 2024

• Support a combination of Bitcoin mining and AI Cloud Services workloads

  • 10 EH/s Bitcoin mining, scaling to 30 EH/s in 2024 – one of the largest listed miners

  • 816 NVIDIA H100 GPUs providing cloud services to AI customers

• Significant pipeline of sites and access to energy, 3 GW portfolio, including a 1.4GW site in West Texas where a connection is underway (2026 in-service date)

🧑‍💻 Projects under development:

• Childress: 100 MW operating, scaling to 350 MW this year, 600 MW total power available

• 1.4 GW development site: 500 acres in renewables-heavy West Texas, connection agreement signed, 2026 in-service date, can support various applications

• 1GW of additional pipeline: various stages of development

⚡️ Key attributes of next-generation data centers:

• 80% of global data centers operate rack density of 5 kW or less (Uptime Institute Report)

  • NVIDIA H100 GPU reference architecture is for 40-45 kW rack density, IREN operates 70 kW rack densities

• Diversified into AI for strategic reasons to smooth returns and potentially superior cost of capital

🔌 Challenges in securing grid access for large new projects:

• Long development process:

  • Identify markets with power and transmission capacity

  • Approach utility for discussion

  • Secure land from local landowners

  • Commission grid study to confirm power availability (6–12 months)

  • Sign connection agreement and build switchyard (2+ years) if power is available; if not, restart the process

• Extremely time-consuming, requiring patience and early planning

🏘️ Bitcoin Mining House for Sale in Dallas, Texas

A former AT&T data center in Dallas, Texas, is currently listed for sale at $2.4m. The property appears residential from the outside but has been converted into an immersion-cooled Bitcoin mining facility.

It features robust infrastructure including steel-reinforced CMU, dual power grids, backup generator, fire suppression, raised floors, and dedicated office and meeting areas. The data center boasts 500kW three-phase power, a dry cooler, and immersion-cooled systems housing ASIC miners, though some units show signs of rust.

Originally priced at $989,000 in 2021, the site has been upgraded by Mountaintop Contractors for crypto operations. Despite its crypto focus, its utility for traditional data center operations amidst larger facilities in downtown Dallas remains uncertain.