Indiana promises to provide uninterrupted energy to cryptocurrency miners and data centers

Indiana lawmakers have guaranteed a “plenty” supply of low-cost power and water to the giant corporations, hoping to attract and service data centers and cryptocurrency mining operations in the region.

Large companies such as Meta, Amazon, Google, Microsoft and cryptocurrency mining company AboutBit have invested or plan to invest in building facilities in the state.

Indiana offers financial incentives to organizations, but AboutBit and other cryptocurrency miners are not eligible to participate in these state programs.

Data centers operating in Indiana as of June 2024. Source: Indiana Capital Chronicle

Data Center for Financial Gain

Last May, Amazon announced plans to invest $11 billion in Indiana, which Indiana Governor Eric Holcomb said:

“(Amazon) wouldn’t have made the commitment if they weren’t confident we could provide both power and water.”

Additionally, David Rosenberg, head of the Indiana Economic Development Corp. and Secretary of Commerce, said the state “has plenty” of both power and water.

AboutBit transformed a 50-year-old power plant into a sustainable, liquid-cooled cryptocurrency mining facility. It currently operates next to the Merom Power Plant in Indiana.

Related: Bitcoin Halving Will Affect Miner Riot’s Revenues by 43% Despite New Facilities

Bitcoin Mining Energy Consumption

As of May 28, U.S. Bitcoin (BTC) miners have spent $2.7 billion on electricity costs this year.

“Since the beginning of 2024, Bitcoin mining in the United States has consumed a staggering 20,822.62 GWh of electricity,” said Paul Hoffman, an analyst at Best Brokers. “As of February, the average commercial electricity rate per kWh was $0.1281, which equates to a spend of $2,667,378,196.47.”

Before the Bitcoin halving in April, mining one BTC required 407,059.01 kWh of electricity, costing approximately $52,144.26. After the halving, the power required to mine one BTC increased to 862,635.55 kWh, which would cost approximately $110,503.61 at average commercial rates.

“This amount of energy would be enough to charge every electric vehicle in the United States 87.52 times and power 1,983,107 households for a year, or 1.51% of all U.S. households,” Hoffman explained.

Last January’s Bitcoin ESG Forecast revealed that sustainable energy use in Bitcoin mining had grown to a new all-time high of 54.5%, with sustainable mining growing by 3.6% overall during 2023.

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