Hong Kong Company Partners with Ethiopian Investment Holdings to Establish $250M Data Center
After discovering a cheap energy source in Africa, key Bitcoin miners have demonstrated interest in expanding to the region. In an advanced communication, the government-owned institution Ethiopian Investment Holdings sealed a partnership agreement with the Hong Kong-based Data Center Service to support Bitcoin mining activities.
Months ahead of the long-awaited Bitcoin halving, the two partners will focus on optimizing crypto mining activities in African country.
Attractiveness of Ethiopia’s Crypto Industry
The report indicated that the two companies will raise $250 million for building a modern data center in Ethiopia.Also the Data Center Service and the Ethiopian company plan to establish an artificial intelligence (AI) training center in Northern Eastern Africa.
The proposed AI training center will support automating Bitcoin mining activities and pushing for mainstream adoption of crypto in Ethiopia. Apart from this, the partners plan to deploy innovative machinery to boost efficiency in Bitcoin mining activities.
In an interview with the chief executive of the Ethiopian Hashlabs, Kal Kassa confirmed that the partnership with Data Center Service will enable the government authority to mine more Bitcoin.
The executive mentioned that even though the Ethiopian government has banned crypto trading, the local authorities still believe that Bitcoin mining will boost the country’s economy. Despite the prohibitive measures imposed by the Ethiopian government against the buying and selling of crypto assets, Mr. Kassa envisage authority might soon reverse its anti crypto move.
Hong Kong Data Centre Expand to Ethiopia
Citing an earlier interview with the Bloomberg, Ethiopia was ranked among the most suitable places for Bitcoin mining. The Bloomberg team noted that famous Chinese mining companies has expanded to Ethiopia to tap into cheap energy sources.
Even though China has banned crypto trading, the authorities later ammended the regulations to allow investors to engage in Bitcoin mining. The revised rules on Bitcoin mining forced Chinese investors to explore viable opportunities in offshore markets including sub-Saharan Africa.
Based on the Bloomberg report, around 19 to 20 Chinese crypto miners have entered into strategic partnerships with Ethiopian companies to increase the production of Bitcoin.
Compared to other African states Ethiopia was considered to have cheaper electricity rates. The Bloomberg team noted that most of the cities and industries in Ethiopia were powered by hydroelectric energy.
Crypto Miners Seek for Cheaper Energy Sources
Even though a larger population in Ethiopia is not connected to electricity, approximately 92% of households and businesses depend on hydroelectric energy.
A review of Ethiopian geographic position demonstrated that the Blue Nile River meanders through the North Eastern African country. This river contributes to the generation of a substantial amount of hydroelectric power in Ethiopia.
Also the Ethiopian Renaissance Dam produces a measurable amount of hydroelectric energy for commercial and household use. The existence of natural dams and lakes positions Ethiopia among the states with low electricity rates.
The reliable source of green power and favorable climates challenge the renowned Bitcoin miners to expand to Ethiopia. Additionally, the Ethiopian government has stepped up to support the growth of the crypto ecosystem.
Significance of Crypto Education in Africa
On February 7, the local authority built an innovative sandbox that will be used to license crypto-related services and products. Besides the government involvement in promoting mainstream crypto adoption in Ethiopia, the authority has facilitated several Bitcoin education programs.
A few months ago, the Ethiopian government joined forces with Cardano’s research and development unit Input Output Hong Kong (IOHK), to launch crypto education programs. The primary objective of the proposed crypto education is to leverage the power of blockchain in boosting learners’ experiences.
Also, the IOHK, in collaboration with the Ethiopian government, seeks to bring millions of users to the crypto sector.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
