Cryptocurrency miners are coming to Quebec in droves

Cryptocurrency miners are coming to Quebec in droves

Cryptocurrency miners are flocking to Quebec in order to set up shop. There are many reasons for this interest, one being the cold climate of the province.

Cryptocurrency Miners are Lured to Quebec as China

Quebec was out fishing for giants of tech, but caught bitcoin miners instead!

At least that is how the Business Development Director at Electrical Utility Hydro Quebec, David Vincent, describes the outcome of a 2016 campaign to attract Amazon, Microsoft, and Facebook to construct their data centers in the Canadian province.

A Simple Sales Pitch to Draw Them In

In much the same way that the online blackjack Canada has to offer keeps to an uncomplicated sales pitch, i.e. real money fun, Vincent kept the sales pitch simple too: Quebec offers an abundance of cheap and renewable electricity, and combines this with cold weather and an environment that is politically stable.

And although Hydro Quebec has gotten many bites from more traditional data center operators, the company also very quickly discovered that these very traits were equally attractive for operations engaged in cryptocurrency mining.

Commercial-Scale Bitcoin Miners are Very Interested

Insubstantial just a short six months ago, interest in Quebec from bitcoin miners operating on a commercial scale has simply skyrocketed, according to Vincent, amidst the cryptocurrency prices surging and the political uncertainty overcoming other jurisdictions.

35 cryptocurrency mining organisations are requesting information regarding connections to the Hydro Quebec power grid. Those companies now amount to around 70% of the total wattage capacity in the development pipeline for Hydro Quebec.

No Further Marketing Required

Vincent stated that there is such a high level of demand at the moment that there is currently no need for additional marketing. And sentiments seem to suggest that what Hydro Quebec is currently seeing is the very tip of the iceberg.

The former CEO of Blockstream, Austin Hill, who is currently concentrating on investing in and backing some of the mining projects interested in moving to Quebec, has stated that, based on what he has seen in terms of equipment purchase, power deals, and real estate, every perspective indicates that things are set to explode in this city.

The Cold Environment is a Great Fit

The mining of cryptocurrency is an energy-intensive process by which new transactions get added to a blockchain. This usually requires specialised hardware, either GPUs or ASICs, to solve complicated mathematical puzzles. Because of the huge amount of computing power that gets used, mining rigs generate significant amounts of heat, and this is why the cold climate of Quebec is so attractive.

But it is not only this cold weather that is making Quebec so appealing to bitcoin miners: the aggressive effort on the behalf of the government after World War II to build dams in its northern regions has also been a factor. One, in fact, that is incentivising mining operators to turn away from existent bases that already have the weather going for them.

This dam work resulted in Quebec becoming one of the biggest hydroelectric power producers worldwide. Hydro Electric, which has 37 000 megawatts of capacity for installed electricity, routinely manages to produce at surplus levels, and this is why it is able to offer some of the lowest rate in the whole of North America to its commercial customers.

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