Crypto exchange Kraken eyes nuclear energy for its data centers

In this post:

  • Kraken is reportedly considering nuclear energy to sustain its data centers amidst a projected boom in decentralized finance.
  • Energy demand for data centers is rising due to increased AI services and digital assets trading.
  • Industry-wide, tech firms have acknowledged the need for other energy sources as the way forward for the sector.

Kraken is considering tapping into nuclear energy to power its data centers. The alternative energy source is expected to enhance the crypto exchange’s energy efficiency and sustainability.

Also read: Nuclear energy poised to meet growing demands driven by AI data centers

Kraken’s move comes as data centers are reportedly consuming high energy due to increased demand for AI services and growth in digital asset trading. The company claims its initiative will address this challenge.

Kraken wants to leverage partnerships 

Kraken is not looking at constructing its own nuclear power plant. Instead, it wants to partner with already established energy service providers specializing in compact nuclear reactors. Unlike traditional power plants that take up more space, nuclear reactors are known to seamlessly integrate with existing infrastructure.

“With institutions moving into the crypto asset class and activity moving on-chain, the need for reliable fiat onramps continues to grow,” Kraken CTO Vishnu Patankar said during an interview with Coindesk. He continued:

“Bolstering our energy resiliency means we strengthen a direct avenue into the crypto ecosystem, supporting its continued growth,”

– Vishnu Patankar.

The company is not confining itself to local collaborations alone as it explores options in North America and Europe. According to Iota News, partnering other businesses into nuclear energy will be handy as it promises stable and reliable energy supply which is critical for high-performance computing AI applications.

Nuclear energy is also viewed as a better option due to its reduced carbon emissions compared to other energy sources like thermal, which contribute to high carbon emissions and eventually climate change.

Tech firms following the trend 

Kraken’s shift towards nuclear energy sources is reflective of broader trends within the industry. Tech firms are increasingly looking at alternative energy sources to sustain the power-intensive data centers supporting their modern AI technologies.

Also read: Taiwan’s nuclear energy pivotal for AI development

Earlier this year, OpenAI CEO Sam Altman spoke at a Bloomberg event at the World Economic Forum’s annual meeting in Davos. He said that more climate-friendly energy sources are critical to power fast-growing modern technologies. He cited nuclear fusion or cheaper solar power and storage as the way forward for AI.

According to Recharge, AI and blockchain technologies are pushing energy demand of data centers, which is skyrocketing and forcing tech firms to “buy up enough clean power.” Altman personally provided $375 million to Helion Energy, a nuclear fusion firm in 2021. The company has already signed a power purchase deal with Microsoft.

Cryptopolitan reporting by Enacy Mapakame





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