Brazil has a problem that might sound like a dream for crypto miners: it has too much clean electricity. Wind and solar farms are generating far more power than the grid can handle.
In some cases, up to 70% of energy is going to waste, costing utilities nearly $1 billion over the past two years. For miners, this is a golden opportunity.
At least six crypto firms are now negotiating with Brazilian energy companies to use this excess power. Renova Energia is investing $200 million in Bahia, building six data centers powered by wind farms.
“We realized that by providing all the infrastructure (for crypto mining), we were one step ahead of our competitors,” said Renova CEO Sergio Brasil.
Tether is tapping energy from sugar mills it recently acquired. Enegix, a miner from Kazakhstan, is testing mobile data centers that can plug directly into power plants. Even Bitmain, one of the world’s biggest mining hardware companies, is exploring the market.
Crypto mining is flexible. Operations can scale up when electricity is cheap and abundant, and scale down when demand is high. This makes miners ideal partners for utilities that have struggled to sell their excess power.
“There’s tons of potential,” said John Blount, co-founder of Enegix.
Brazil’s renewable energy growth has been fueled by government incentives. But transmission infrastructure hasn’t kept up, leaving wind and solar energy stranded. Mining companies see a chance to turn wasted electricity into profit.
Energy providers are noticing. Casa dos Ventos, TotalEnergies, and Atlas Renewable Energy are exploring crypto partnerships. Eletrobras has even installed ASIC mining machines powered by wind and solar microgrids as part of pilot projects.
“Energy providers see consumers like this as diamonds,” said lawyer Raphael Gomes.
Still, challenges remain. Grid bottlenecks, drought risks, and unclear regulations could slow growth. Large projects, like those aiming for 400 MW, will be difficult to execute.
Brazil’s crypto mining boom shows a unique alignment: digital technology meeting green energy. If managed well, mining could turn excess power into profit, reduce bitcoin’s carbon footprint, and establish Brazil as a hub for green-powered crypto operations.
For now, crypto miners are helping Brazil find a market for energy that was going to waste, creating a story where surplus turns into opportunity.
Yes, the operations are primarily powered by surplus wind and solar energy, which can significantly reduce Bitcoin’s carbon footprint.
Miners provide a flexible demand, buying excess clean energy that would otherwise be wasted, turning an environmental problem into an economic opportunity.
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