The United Arab Emirates (UAE) is making significant strides in establishing itself as a prominent Bitcoin mining destination in the Middle East.
With over 30 free trade zones and a growing contribution to the global Bitcoin mining hash rate, the country is becoming a go-to hub for crypto-focused companies.
As Cointelegraph reports, one notable development is the joint venture between Marathon Digital Holdings and Zero Two, which paved the way for establishing a massive 250-megawatt (MW) Bitcoin mining operation in Abu Dhabi.
Abu Dhabi: Middle East's Newest Crypto Hub
Abu Dhabi, known for its energy efficiency and as the center of trade in the UAE, has emerged as a prime location for crypto mining activities.
The partnership between Marathon Digital and Zero Two aims to leverage the excess energy in Abu Dhabi to power two mining sites.
The larger 200MW site will be located in Masdar City, the sustainability hub of Abu Dhabi, while the remaining 50MW site will be situated in Mina Zayed, the port zone.
This strategic move strengthens Abu Dhabi's power grid and contributes to the sustainability of the global digital economy.
Addressing Some Concerns
To address the environmental challenges posed by Abu Dhabi's desert climate, Marathon Digital and Zero Two have developed a custom-built immersion solution.
This innovative technology enables efficient cooling of the ASIC miners and optimizes their performance.
The successful pilot program conducted by Marathon Digital and Zero Two demonstrated a significant reduction in maintenance requirements, further affirming the feasibility of large-scale immersion digital asset mining in Abu Dhabi.
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What's Next?
Construction is already underway for the two mining sites, with an expected completion before the end of 2023.
Once operational, these sites will be among the most technologically advanced and energy-efficient mining operations globally, boasting a combined hash rate of approximately 7 exahashes per second (EH/s)
An exahash is a term used to describe Bitcoin mining, and it signifies that every second, a cluster of mining equipment performs one quintillion hash operations in total.
The UAE's combined Bitcoin mining capacity, currently estimated at around 400 MW, accounts for 4% of Bitcoin's global hash rate. This figure positions the UAE as a potential contender in the global Bitcoin mining landscape, gradually climbing the ladder alongside countries like the United States, China, Russia, and Kazakhstan.
A Great Hub for Crypto
The UAE's transition from relying solely on oil and gas reserves to embracing solar and nuclear energy aligns perfectly with the needs of the Bitcoin mining industry.
Cointelegraph notes that the fluctuation in the country's electricity demands between the hottest and coolest months results in a significant loss of generated electricity. However, this surplus energy can be effectively utilized by Bitcoin miners, who prioritize using clean energy sources.
The shift towards clean energy, coupled with the country's zero-tax policy, attracts Bitcoin miners to register in the UAE's free trade zones, thereby enjoying exemptions from corporate tax, value-added tax, and import duties.
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