Russia’s crypto pivot continues as the Komi Republic in northeastern Russia announces plans to build 15 new crypto mining data centers. Regional governor Vladimir Uyba stated that the first two centers will be built in Mikun and Sindor, with investors backing the $27.6 million project. While Uyba did not specify which coins would be mined, Russian miners typically focus on Bitcoin. The project aims to develop the IT industry and digital technologies in the region, with plans to construct more data processing centers in other cities and regions of the republic in the future.
Located to the west of the Ural Mountains, Komi is known for its abundant oil and gas reserves, newly opened hydrocarbon fields, and thermal power plants. The region experiences long, cold winters and shorter summer periods, making it conducive to crypto mining. The announcement comes shortly after reports that Gazprom, a majority state-owned gas giant, will establish a crypto mining-focused subsidiary that will build a 5,000-rig mining center in Veliky Novgorod. With a budget of $452.4 million, the facility is expected to reach full capacity by 2028.
In August, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining, requiring industrial players to register with a central body. However, private miners are exempt from registration if they stay within residential energy usage caps. Putin emphasized the importance of launching regulations, infrastructure, and favorable conditions for the circulation of digital assets. The government is also considering allowing miners access to surplus electricity, with plans to build new mining centers in regions outside of Siberia, where illegal mining activities have led to grid strain and crackdowns by local power providers.
The collaboration between the Komi Republic and a power firm named Energoresource-K highlights the commitment to investing in the project, with plans to invest around 35 billion rubles in the construction of new data centers. The partnership aims to boost the region’s IT industry and digital technologies, aligning with Putin’s push for progress in mining activities. With the legal framework in place and support from government officials, Russia’s crypto mining sector is poised for growth and development, with a focus on regions like Komi that offer favorable conditions for mining operations. The influx of investment and infrastructure development signifies a strategic shift towards embracing digital assets and blockchain technology in the country’s economic landscape.
