Crypto Mining News Daily

Saturday, July 13, 2024
HomeNewsArgentina's Zapala Special Economic Zone Emerges as New Hub for Bitcoin Miners...

Argentina’s Zapala Special Economic Zone Emerges as New Hub for Bitcoin Miners and Data Centers, Fleeing Paraguay’s High Electricity Tariffs


In a significant shift, Bitcoin miners and data centers are abandoning Paraguay’s high electricity tariffs and flocking to Argentina’s Zapala Special Economic Zone in Neuquén province. The region’s comparative advantages in energy and tax incentives have made it an attractive destination for cryptocurrency mining operations.

A joint venture between Brazilian and Argentine companies, Zapala Mining and Patagonia 360, is launching a mining project that will commence operations in October. The initiative will utilize sustainable energy resources and take advantage of the free zone’s significant fiscal benefits for investors in high-energy-demand technologies.

The project’s initial phase will start with a capacity of 8 MW, with plans to expand to 100 MW by 2025 and eventually reach 200 MW in 2026. The capacity could escalate to 1000 MW, surpassing the output of a turbine from the Itaipú hydroelectric plant.

The ecological impact of the project is also noteworthy, as it will recycle shale gas extracted from Vaca Muerta to generate electricity, minimizing environmental impact and ensuring a reliable energy supply.

The move away from Paraguay has raised concerns about the potential decline of Bitcoin mining as a local economic activity. However, Argentina’s promise of regulatory stability and lower energy costs is attracting more investors to consider the region as a potential hub for cryptocurrency mining.

The Zapala project is not only poised to become a major Bitcoin mining center in Latin America but also represents a strategic adaptation to the global shifting energy and regulatory crypto market. As the cryptocurrency industry continues to evolve, it is likely that more miners and data centers will follow suit, seeking out cost-effective and sustainable solutions for their operations.

Source: Crypto Mining News - Bing


Most Popular

Learn How to Mine Crypto

Join our mailing list and receive a free copy of Crypto Mining 101, our detailed guide on how crypto mining works, must have tools to get started, and how to be successful.

Note: We’ll never sell, trade, or abuse your information, and it’s simple to opt out! Read our Privacy Policy here.