Russian cryptocurrency mining company Intelion has made a significant investment of $135 million in artificial intelligence (AI). Intelion, a major player in Bitcoin mining in Russia, plans to use this investment to purchase server equipment for AI computing. The company, which is one of the largest industrial mining operators in Russia, will utilize its new capacities for a data center project in the Samara Oblast.
To implement this new AI project, Intelion will establish a subsidiary called Intelion Cloud, focusing on developing companies in the AI field and providing clients with access to high-performance computing power. As the global cryptocurrency markets continue to grow, domestic mining companies in Russia are expanding rapidly. They have also formed partnerships with energy providers in regions with cooler climates and low electricity costs.
This expansion has led mining companies to venture into AI-related industries and offer new data centers to Moscow in hopes of gaining regulatory approval. Moscow is aiming to launch a nationwide IT development project, with cryptocurrency mining companies believing that their data centers will contribute to achieving this goal.
Experts predict a significant increase in energy consumption due to AI development, estimating that Russian electricity consumption in the AI sector could reach 4.5 GW by 2035. Intelion Cloud’s CEO, Maxim Vyaznikov, emphasized the urgent need for new infrastructure and advanced GPUs to support the growth of the domestic AI sector.
The first phase of the Samara data center is expected to be operational in the fourth quarter of 2024, with a total investment of $48.2 million over the next two and a half years. Intelion Cloud is equipped with modern servers, including Nvidia A100 series graphics accelerators, and offers per-second pricing options for AI firms renting servers.
The growing demand for electricity for AI systems is creating additional income for Bitcoin miners, with similar projects being launched in the United States by companies like Core Scientific. These developments come as the mining sector continues to push for legalization and recognition as a legitimate form of entrepreneurship.
In February, BitRiver, another Russian cryptocurrency mining firm, announced the construction of a new 100 MW data center in Buryatia. This expansion indicates a shift towards building data centers in regions outside traditional Bitcoin industry hubs, such as Irkutsk. Despite the challenges, miners remain hopeful for regulatory breakthroughs that will support their continued growth and innovation in the industry.
