This year will see the first Bitcoin mining-related investment in Zapala Free Zone. It is an area in Neuquen (Argentina) that has the goal of encouraging various productive activities. In the first year, the company will generate over 114 MW power to support mining operations.
Zapala Free Zone Joins Bitcoin Mining
Zapala, an Argentina free trade zone, is set to receive the first Bitcoin mining-related investment. In 2023 the planned zone is expected to be able to produce 114 MW. These monies will go towards the development of the area as a bitcoin mining hub. Bitcoin mining in the region is incentivized in that Zapala, being a free zone, doesn’t charge taxes for using public services.
A business plan will be prepared for the provincial government and it is estimated that $20 million will be invested in this project. It will be finished by Q1 2023. The managing director of FMI Minecraft, John Blount, stated that this project will be a phased construction that will include “a 100 MW high-density data center for an industrial BTC data processor/miner, expandable to over 1 GW.”
Fernando Montero (CEO of Zapala Free Zone) explained that in order to achieve this goal, the company will need to lay 100 kilometers of gas pipes within the first year. Montero also spoke out about the many benefits associated with these types of projects. He stated that:
The fact of being a Free Zone gives us the benefit of being exempt from taxes for certain projects, which is why it is a very attractive space for investments related to oil & gas, mining, and technology. We are centrally located and have easy access.
A Bitcoin Mining Haven for Argentina
Recently, Bitcoin miners have been looking at Argentina as a location that offers favorable business conditions. Bitfarms, another miner, has set up a mining hub in Argentina that will house 55K Bitcoin-miners. The center is expected to have a total of 210 MW.
According to reports, Argentina’s main selling point is its low price for power to mine Bitcoin. Bitfarms reportedly obtained a price of 2.2 cents per kilowatt hour, described as an “attractive rate” by the CEO of the company, Emiliano Grodzki.
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