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Bitcoin Miners Pivot to Data Center Operations Amid AI Boom

Bitcoin Miners Pivot to Data Center Operations Amid AI Boom
High-capacity GPU infrastructure and a focus on efficiency are driving crypto-mining firms to embrace the AI data center trend.

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Bitcoin miners are shifting their focus to data center operations in response to the growing demand for AI applications. A new data center provider, Iris Energy, is entering the market with a focus on power-dense computer applications, including AI and Bitcoin farming. The company is building data centers in remote locations to take advantage of cheaper infrastructure and plentiful renewable power. Iris Energy has secured its first customer, a startup called Poolside AI, and plans to expand its operations to serve the high-growth AI market. Other crypto-operators are also venturing into the high-yield AI space, as analysts see it as a frugal move amid a slump in Bitcoin mining revenue. The move to AI workloads is seen as a smart hedge that can help during down periods for cryptocurrency. While the business model may not be attractive to major players due to the scale of new data center designs, it is seen as an inexpensive approach with potential appeal.