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Kraken Exchange Considers Nuclear Energy for Data Centers

By Evan Jones07/10/2024

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Kraken, one of the most reputable cryptocurrency exchanges in the sector, is considering nuclear energy for its data centers. With there being 24/7 demands when running a cryptocurrency business and the continued adoption of crypto assets over time, Kraken wants to see how it can scale its business in terms of energy supply and latency.

Tech Firms Seeking Alternative Energy

Kraken isn’t alone in their search for nuclear energy sources. Reports show that roughly a third of US nuclear-power plants are in talks with varying tech companies. These companies need nuclear power plants to provide electricity to the new data centers needed to meet the demands of the artificial-intelligence boom that is currently underway.

Amazon Web Services is one of these tech companies, and they’re nearing a deal for electricity supplied directly from a nuclear plant with Constellation Energy, the largest owner of US nuclear-power plants. In March, they purchased a nuclear-powered data center in Pennsylvania for $650 million, though that was unrelated to the new deal.

Kraken Following Trend

Kraken’s CTO Vishnu Patankar said Kraken was definitely considering nuclear power as an option. This due to the fact that other alternatives such as wind and solar are weather dependent and energy storage also poses a challenge when using them. 

Considering the non-stop nature of the cryptocurrency sector and increasing use of DeFi applications, there is likely to be a need for a backup energy source that won’t be affected by increased demand the way that being part of a regular grid might. 

However, the moves by both tech companies and Kraken won’t be without controversy, as regular homeowners in these areas could face issues during times of high demand for these tech companies’ data centers. Somewhat ironically, this is one of the main reasons why Bitcoin mining is considered controversial in many areas of the US.

Closing Thoughts

Kraken and all other tech companies alike are serious in their pursuit of nuclear energy. The increasing demand and quantity of power required for data centers, especially those focused on AI, are only going to increase. Companies are trying to get ahead of the curve now, but it may come at the expense of regular consumers. 

It will be interesting to see what happens as power production potentially gets siphoned towards conglomerates and their companies rather than to individuals and their homes.

Article tags

cryptocurrency
environment
Exchanges
green energy
Evan Jones

Author

Evan entered the crypto scene in 2017, attracted to the many disruptive possibilities that blockchain could have on current world systems. He has a keen interest in decentralized services, payment processing, and viable NFT use cases such as event ticketing. He spends his days writing with his dog Kobe under his feet, if not on his lap.

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