New Crypto Mining Hub: Russian Region to Establish 15 Data Centers in Komi Republic
Russia is ramping up its crypto mining efforts with the northeastern Komi Republic set to become a new hotspot for the industry. The regional government has announced plans to construct 15 data centers dedicated to crypto mining, marking a significant step in the country’s crypto pivot.
According to a report from TASS, Komi’s Governor, Vladimir Uyba, confirmed that the first two data centers will be built in the towns of Mikun and Sindor. Mikun is a key city in the Ust-Vymsky District, while Sindor is a smaller settlement in the Knyazhpogostsky District. Uyba revealed that land plots for both centers have already been allocated, and the development will be a joint venture between the regional government and Energoresource-K, a local power company.
Russia’s Growing Crypto Mining Infrastructure
The Komi Republic, located west of the Ural Mountains, is not traditionally known as a crypto mining hub. However, the region boasts vast natural resources, including oil and gas reserves, newly tapped hydrocarbon fields, and thermal power plants. Its cold climate, with long winters and shorter summers, also makes it an ideal location for energy-intensive crypto mining operations.
Governor Uyba indicated that additional data processing centers would be built in other cities and regions of Komi in the future, signaling the region’s growing commitment to supporting crypto mining.
Gazprom’s Expansion into Crypto Mining
This announcement comes on the heels of news that Russian state-owned gas giant Gazprom plans to establish its own crypto mining subsidiary. Gazprom’s new facility, which will house 5,000 mining rigs, is set to be constructed in Veliky Novgorod, a historic city in the Novgorod Oblast. The project is expected to reach full capacity by 2028, with a budget of $452.4 million earmarked for the venture.
National Efforts to Regulate and Support Mining
Russia's federal government is also stepping up its efforts to regulate the burgeoning crypto mining sector. In August 2024, President Vladimir Putin signed a law legalizing cryptocurrency mining, requiring industrial miners to register with a central authority. The law exempts private miners from this registration requirement, provided they stay within residential energy usage limits.
Putin has emphasized the importance of seizing the moment to establish a regulatory framework and build the necessary infrastructure to support digital assets. Earlier this month, a government minister outlined plans to grant miners access to surplus electricity, further demonstrating the country’s commitment to expanding its mining capabilities.
Shifting Mining Hubs
Historically, Siberia has been the focal point for crypto mining in Russia, particularly in the Irkutsk Oblast. However, recent crackdowns on illegal mining operations have led major industrial players to seek alternative locations. With this shift, regions like Komi are emerging as new crypto mining centers, attracting significant investment. The initial investment in Komi’s first two data centers is estimated at $27.6 million, backed by private investors.
While Governor Uyba did not specify which cryptocurrencies will be mined, Bitcoin (BTC) remains the dominant focus for most Russian mining operations.
As Russia continues to establish itself as a global player in the crypto mining sector, the Komi Republic’s new data centers are poised to play a key role in the country’s future mining landscape.
