By
Mayowa Adebajo
October 24th, 2022
Redstone, a new data storage and crypto mining facility that is being set up by Telecor, a Russian engineering company, will be launched in June 2019.
Digital farms for data storage and crypto mining have many similarities. They require large spaces, efficient cooling, cheap power source and online connectivity, among others. The amount of machines working together require a lot of power to operate and cool the heat generated. As such, managing these resources is a key factor in the success of these operations.
Redstone is a new data storage and crypto mining facility that is being set up by Telecor, a Russian engineering company that has a vast range of engineering projects (over 500) successfully completed in its 15 years of history. The projects range from power plants to telecommunications, and more.
The location of the Redstone project is ideal for a data and mining farm. The farm is located in the northern Russian city of Krasnokamensk. A thermal power plant is located near the city, offering cheap power to the farm. The power plant operator, Rosatom, is a state owned entity that primarily provides energy to the country through nuclear power and is the energy partner of Redstone. The mining farm will feature an off grid power plant, producing 50 megawatts of energy to meet its demands. Online connectivity to the internet for data and mining will be provided by Rostelecom, the largest digital communication provider in the country.
The location has other advantages too, such as proximity to the Chinese border and Manchuria airport. This means good accessibility to large investors and easier access to cheap hardware from China. The extreme northern location also has an added advantage of cooler weather, with an average temperature of 2 degrees Celsius. The cool temperatures and a natural water supply means the facility can take advantage of extremely cheap natural cooling and further drive down costs, whilst keeping equipment at optimal temperatures.
One of the biggest issues data and mining farms face are ever increasing energy costs. Bitcoin, the biggest cryptocurrency, is notorious for consuming huge amounts of energy in its PoW consensus style of transaction confirmation. Mining and data firms are always looking out for cheaper sources to build the farms around. Countries like Norway were once a very good source of cheap energy with their exemptions and geothermal energy, but with the recent decision to scrape the subsidies, data and mining farms are not looking elsewhere. Redstone is perfectly placed to offer affordable services when it comes to mining.
Andrew Chernoknizhnikov, CEO of Telecor said:
“Amid predictions about constant increase in electricity prices, Telecor is able to fix service prices provided at Redstone for the next 10 years, it is an important and valuable benefit for our customers and due to low costs and own energy generation at Redstone, which are for sure some of the most important benefits of this site, our company could offer very low prices, probably the lowest, not only in Russia but throughout the world.”
Krasnokamensk is also ready to help Redstone develop its project, bringing economic development to the area. Construction of the data and mining centre is set to start this month, with phase one (producing 50 MW worth of power to drive equipment), which will be ready to be launched in June 2019.
