An Armenian company has added a 60MW cloud hosting facility to its cryptocurrency mining operations as they look for new places. As a result, a local mining operator has added 60MW to its power plant-based facility. This is a sign of the establishment of economic zones free of charge that encourage cryptocurrency adoption in Armenia.
Since 2018, the cryptocurrency investment platform ECOS operates a mining centre on the grounds the Hrazdan Power Plant. The utility is located in the heart of the country and is rapidly becoming an innovation hub. It offers attractive financial benefits as well as direct access to the power plant.
The Armenian government formed a partnership with ECOS in 2018 to establish the mining facility. This charged the company with developing the free economic zone (FEZ), which is a hub for cryptocurrency mining and data centers.
The operator and Armenian government signed an agreement that promotes direct foreign investment and creates products and services in the Information Technology sector.
Cointelegraph spoke with Anna Komashko, ECOS marketing manager, following the August upgrade of its Hrazdan mining operation. Komashko described the four-year journey so far and explained that Armenia is the country of blockchain.
“FEZ’s main purpose was to attract and develop high-tech technologies in the country, and help crypto and blockchain startups. Therefore, specific benefits are applied.”
Marketing manager, David Hrazdan, confirmed that Hrazdan’s businesses enjoy special tax conditions. There are no taxes for VAT, import or export customs duties, taxes on real estate, or taxes on property. A 25-year agreement guarantees uninterrupted electricity supply, which will ensure the project’s longevity.
The site’s infrastructure includes a service center, data center, and warehouse for spare parts and equipment. The data center houses approximately 250 mining units and seven shipping containers. ECOS purchases its miners directly through Bitmain, a Chinese manufacturer. Its cloud mining service is used by approximately 258,000 people. The company also sells and provides services to clients.
China’s prominent crackdown on cryptocurrency mining led to a shift in geolocational distribution. This made sites that offer low power or tax incentives highly desired.
The mining facility is located at the Hrazdan power station. It gets its electricity supply from the high-voltage grid directly and uses the infrastructure to power containers. Komashko noted that ECOS could be expanded to provide 200MW more clean and affordable electricity. This area is ideal for cryptocurrency mining. It is located in Armenia’s mountainous region with an average annual temperature of 4.8degC.