Marathon Digital and Zero Two Partner for Abu Dhabi Bitcoin-Mining Facility
Jessie A Ellis May 11, 2023 23:01
Marathon Digital Holdings and Zero Two have partnered to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, based in Mina Zayed and Masdar City, will comprise two mining sites with a combined 250-megawatt capacity. Marathon and Zero Two plan to power the facilities with excess energy from Abu Dhabi’s grid.
Marathon Digital Holdings and Zero Two have announced a partnership to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will be based in Mina Zayed and Masdar City in the United Arab Emirates, and will comprise two mining sites with a combined 250-megawatt capacity. Marathon and Zero Two plan to power the facilities with excess energy from Abu Dhabi’s grid, claiming it will increase its base load and sustainability.
According to Marathon Digital, crypto mining in the desert climate of Abu Dhabi, where the average annual temperature is roughly 28 degrees Celsius (82 degree Fahrenheit), was often "infeasible." However, the company said it had helped develop a "custom-built immersion solution" to cool mining rigs at the proposed facilities, suggesting a liquid-cooling solution.
The two firms expect both Abu Dhabi facilities to be online by 2024 and produce a combined hash rate of roughly 7 EH/s. Ownership of the project will be split between Zero Two and Marathon Digital, with the two companies controlling 80% and 20%, respectively.
The move comes as executives from United States-based crypto exchange Coinbase visited the UAE to test the potential of the region as a "strategic hub" for its international operations. Coinbase CEO Brian Armstrong met with policymakers and spoke at the Dubai FinTech Summit.
The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi's excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.
Marathon Digital's experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project. The two firms plan to have both facilities up and running by 2024, with a combined hash rate of roughly 7 EH/s.
Meanwhile, Coinbase is exploring the potential of the UAE as a strategic hub for its international operations. The visit by the company's executives, including CEO Brian Armstrong, highlights the growing interest in the region as a destination for crypto-related businesses.
Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region's excess energy and overcome the challenges of the desert climate. With the backing of both firms, the joint venture is well-positioned to succeed and could pave the way for further expansion in the Middle East.
Image source: Shutterstock