In the evolving world of data technology, there has been an eruption of significant innovations. Among them are Artificial Intelligence (AI) and Bitcoin Mining. As per recent events, the two brilliant innovations have come together in a surprising union in Texas.
The renowned state famous for its pioneer spirit hosts the cutting-edge data center in Garden City. The effects of this union are yet to be discovered, but according to crypto enthusiasts, this could be a sight of a promising future. The AI and digital currency fusion focuses on revolutionizing the approach to Bitcoin mining.
The new data center in Texas
The artificial intelligence (AI) and blockchain provider Applied Digital has recently opened its new 200-megawatt (MW) data center hosted by Garden City in Texas. It also marks the third facility going live in North America, established by the Applied Digital company.
According to the company’s announcement during the opening on Friday:
Once fully energized, this location will bring Applied Digital to the fully planned 480 MW of total hosting capacity across its blockchain hosting facilities.Applied Digital
Another popular Bitcoin mining company has a 1 gigawatt (GW) mining facility in the same state. In metric terms, a gigawatt (GW) refers to a billion watts, while a megawatt (MG) refers to a million watts. According to Cambridge, the entire Bitcoin network currently requires 14.83 GW. This is an increase from its September estimate of 12.89 GW.
The energy is used in producing Bitcoin hashes that are used in the construction of new blocks in order to get mining rewards from the minted BTC. Bitcoin’s current hash rate is 400 exahashes per second (EH/s), according to Bitinfocharts. One exahash accounts for an estimate of one quintillion hashes.
Wes Cummins, Applied Digital’s Chairman and CEO, commented on the opening, stating, “Depending on the model of miners, the facility will support 7-8.5 EH.”
He also elaborated that none of the hash will be used by the company, confirming that it only hosts other miners. This implies that the new facility owns the mining rigs that Allied houses and does operations on their behalf. The services offered by Applied Digital in Bitcoin mining have earned them $22 million in revenue since the first quarter to May 2023.
However, recent developments in the Applied Digital company indicate its move from Bitcoin mining to high-performance computing (HPC). This is another energy incentive service in the AI industry. This service requires a larger pool of resources, including bigger data centers.
According to Adam Sharp, HIVE’s Digital Research Director, “the HPC services are far more profitable per unit of energy” than Bitcoin mining. Cummings was also quoted saying, “We are focusing all new expansion on HPC/AI workloads.”
Bitcoin Mining and AI
BTC mining is an energy incentive process that focuses on solving complex mathematical puzzles in transaction validation on the Bitcoin network. The involvement of AI in Bitcoin mining could assist in tackling this issue head-on.
The AI algorithms will be used in optimizing all aspects of the Bitcoin mining process. This includes data analysis from different sources, including energy demand as well as mining equipment performance. The AI can make real-time decisions that can help in maximizing energy efficiency.
AI can also predict the maintenance needs of the mining equipment. This prevents costly downtime and, in the long run, improves the longevity of the hardware. The AI combination with BTC mining presented by the Texas data center hosted by Applied Digital will lead to the essential approach to enhancing overall profitability in Bitcoin mining. The data center is committed to sustainability amidst the BTC mining criticism for its impacts on the environment.