Canada’s DMG Blockchain Mining Operation is Creating Own Electricity Substation
Canada’s DMG Blockchain To Build Their Own Electricity Infrastructure
As cryptocurrency mining requires a lot of power consumption, miners are seeking access to cheap and accessible electricity to accelerate and streamline their operations. DMG Blockchain, a Canadian company, is attempting to build an electrical substation to power its cryptocurrency mining enterprise.
The company is currently building what would eventually turn out to be a fully-functioning electrical substation. The substation is located near the Southern British Columbia town of Castlegar and obtains its electricity supply from hydropower.
DMG Blockchain Solutions is a multi-sector crypto and blockchain firm that manages and provides Bitcoin mining and hosting in addition to blockchain platform development. The flagship mining facility is set to become fully operational in September 2018 with 60 megawatts available for energizing mining rigs, and will reportedly be one the largest mining facilities in North America. The 85-megawatt substation will be connected to the utility power grid and will increase DMG’s hosting capability by more than 20 times.
Steven Eliscu, head of corporate development for DMG, further spoke on the development. According to Eliscu, building the substation costs millions of dollars and required the company to construct access roads in order to haul equipment to the site.
Commenting minimally on the DMG substation project and the services they provide, local utility in Castlegar, FortisBC, said:
“These operations typically have significant electricity needs due to the amount of computer hardware employed. As a public utility operating in BC under the Utilities Commission Act, we have an obligation to serve customers in our service area, subject to certain conditions and restrictions, including crypto mining operations.”
For DMG Blockchain, building its own substation is all about speed. Going through the normal process of contracts and approvals to get access to a substation from the utility could take over a year, Eliscu said, whereas DMG is bootstrapping its substation in the space of six months. This isn’t to beat on utilities. This is just how they are and how they’ve always operated. They’re not used to working at bitcoin speed, it's very different for us.”
Notably, Canada has become a leader in crypto mining due to its low energy costs. According to provincial power utility Hydro Quebec, the province has an energy surplus equivalent to 100 Terawatt hours over 10 years and offers some of the lowest electricity rates in North America.