Russian crypto mining company Intelion has recently announced a significant investment of $135 million in artificial intelligence (AI). The company, known for its involvement in Bitcoin mining, is one of the leading industrial mining operators in Russia.
According to reports from the Russian media outlet RBC, Intelion plans to use this investment to acquire server equipment for AI computing. This investment is part of a larger data center project in the Samara Oblast region of Russia.
To implement this new AI project, Intelion will be spinning off its high-performance computing business into a subsidiary called Intelion Cloud. This new firm will focus on developing a group of companies in the AI field and providing clients with access to high-performance computing power.
The crypto mining industry in Russia has been rapidly expanding, with companies striking deals with energy providers in regions with cooler climates and low electricity fees. As a result, these companies are branching out into AI-related industries and offering access to modern data centers in hopes of gaining favor with regulators.
Experts predict that the development of AI will lead to a spike in energy consumption, with Russian electricity consumption in the AI sector projected to reach 4.5 GW by 2035. To support this growth, new infrastructure and advanced GPUs are essential. Intelion Cloud’s CEO, Maxim Vyaznikov, emphasized the importance of these investments in the domestic AI field.
Intelion Cloud is set to launch the first phase of its Samara data center in the fourth quarter of 2024, with further investments planned for the construction of the center over the next two and a half years. The company aims to provide modern servers, including Nvidia A100 series graphics accelerators, to AI firms on a per-second pricing basis.
In the United States, similar projects have been undertaken by mining firms like Core Scientific, who recently announced a $3.5 billion agreement with cloud service provider CoreWeave. This partnership is expected to supply 200 MW to AI projects, generating significant income for the mining company.
As the crypto mining sector continues to seek legalization and recognition as a form of entrepreneurship, companies like BitRiver are expanding their operations to regions like Buryatia. By building data centers in areas outside of traditional Bitcoin industry hubs, these companies are hoping to secure regulatory approval and support for their operations.