Abilene, a small Texas town whose history is tied to the American Old West, is currently undergoing a radical technological transformation. Two leading companies in the field, Lansium and Crusoe Energy Systems, have announced a multibillion-dollar agreement to build a 200-megawatt data center on the outskirts of town.
This new facility, designed to serve the needs of artificial intelligence companies, represents a qualitative shift in the two companies’ work in the declining field of Bitcoin mining to enter the field of artificial intelligence, which is growing at a rapid pace, according to a report in “CNBC”.
The era of data centers.
When completed, the new data center will be one of the “largest AI data center campuses in the world,” Lansium President Ali Finn told CNBC.
“Data centers are evolving at an accelerated pace to meet the modern needs of running AI models, requiring new levels of area density, direct liquid cooling of processing chips, and massive power requirements,” added Chase Lockmiller, CEO of Cruso Energy.
The report notes that Bitcoin mining companies, with their massive data centers and vast power supplies, are uniquely positioned to shift to AI infrastructure, in response to financial pressures from the recent halving of Bitcoin.
It is an event that occurs every 4 years and causes revenues from cryptocurrency mining to be cut in half, prompting these companies or individuals to look for new sources of income.
Lansium and Cruso aren’t the only ones embracing this strategic shift now. The market cap of the top 14 U.S. bitcoin miners reached $22.8 billion in mid-June, according to a report from JPMorgan, reflecting the growing interest in AI.
Companies like BitDigital and Hot8 are already generating significant revenue from AI; BitDigital now generates 27% of its revenue from AI, after a lucrative deal to supply GPUs from Nvidia, a deal it expects to generate $92 million in annual revenue.
The company is paying for the GCUs in part by divesting some of its cryptocurrency holdings. Hot8 has also raised $150 million to expand its AI data centers, the report noted.
Core Scientific, which emerged from bankruptcy in January of this year, has been on a major comeback thanks to its AI ventures, and the company’s stock was recently upgraded to nearly $2 billion after striking a major deal with Nvidia-backed startup CoreWave.
Sustainable energy
Kroso Energy’s technology, which turns wasted energy into a valuable resource, has long been associated with bitcoin mining, but the company’s vision has always included an AI infrastructure since its founding six years ago, the report says.
The new facility in Abilene is expected to be operational by 2025, relying primarily on renewable energy sources. Lansium’s energy regulation technologies ensure that AI data centers support the power grid by balancing variable energy sources such as wind and solar.
Lansium’s strategy has evolved from bitcoin mining to AI, driven by the need for scalable, sustainable, and cost-effective energy solutions. Their patented technology enables rapid adjustments in energy demand, which is critical to balancing renewable energy grids, the report said.
The shift from bitcoin mining to AI is not just a technology shift, it’s also an energy challenge, with the Electric Power Research Institute estimating that data centers could consume up to 9% of total U.S. electricity by 2030, up about 4% from 2023.
This increase is prompting companies to explore the potential of nuclear power as a sustainable energy source for AI power loads. Terra Wolf uses nuclear energy to power its sites and plans to expand into artificial intelligence and machine learning. OpenAI CEO Sam Altman expressed strong support for nuclear power last year, telling CNBC, “I don’t see a way to get there without nuclear,” as his comments highlighted The pivotal role of sustainable energy in meeting the growing needs of AI infrastructure.
Economic impact
The economic impact on Abilene and the broader West Texas region is expected to be significant. Construction and operation of the new data center will create numerous jobs, both directly and indirectly, local businesses are likely to see increased activity in the market, and infrastructure investments to support the center’s energy needs will further boost the local economy.
While the shift to AI presents significant opportunities, it also comes with its challenges. The high power demands of AI data centers require a steady and abundant supply of power, as well as improvements in cooling technologies to control the heat generated by the intensively operating equipment. Companies like Lansium and Crusoe are trying to develop such technologies, but they will need to continually innovate to keep up with the rapid growth of the AI field, the report noted.
The shift from Bitcoin mining to AI represents a major technological and economic shift for companies like Lancium and Cruso. And with the construction of a new AI data center in Abilene, Texas is poised to become a major player in the AI revolution, leveraging its abundant renewable energy resources.
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