There are plans to ban digital asset mining in traditional data centers. The goal is to prevent digital asset miners from getting electricity discounts, which will now be granted only to traditional data centers recognized as telecommunications facilities.
The bill, prepared for the second reading, proposes classifying traditional data centers as communications facilities and defining them as “a set of buildings or premises used to house equipment for processing and storing data.”
The Ministry of Digital Development, Communications and Mass Media of the Russian Federation will maintain a registry of traditional data centers, and their owners will be able to voluntarily join the registry. However, such data centers included in the registry will be prohibited from hosting digital asset mining infrastructure and digital asset mining cryptocurrency.
Digital asset mining industry experts told RBC-Crypto how this could impact industrial digital asset mining in Russia and what changes the market will see if the bill is adopted in its current form.
Expected measure
The bill to support traditional data centers was passed in its first reading back in 2022, but that version did not include a ban on digital asset mining. Nevertheless, according to Artem Shchepinov, GR Director at Intelion, the final adoption of the document is an expected measure. This step is important in terms of establishing Russia's technological sovereignty and strengthening its regulated digital infrastructure, the expert explained.
However, the bill was not posted for public comment on regulation.gov.ru, notes Oleg Ogienko, an independent expert on blockchain, energy, and digital finance. Consequently, it did not receive a full response from businesses and the general public, but perhaps there were reasons for this, he added.
If the bill is passed in the version currently under discussion, the industrial digital asset mining industry, as well as the traditional data center industry itself, could suffer, Ogienko believes. However, Shchepinov believes the law's impact on the industrial digital asset mining sector will be limited.
Self-sufficient industry
The digital asset mining industry in Russia is self-sufficient and sustainable, says a representative of a digital asset mining data center operator. He adds that the industry requires no government support and generates revenue for the power grid, as well as federal and regional budgets.
The versatility of industrial digital asset mining data center infrastructure has already been confirmed by relevant research, including the Moscow Institute of Physics and Technology's "Data Center 2.0: Mining and Artificial Intelligence" study and a review by the Analytical Center under the Government of the Russian Federation. For example, the Intelion data center in the Samara region is divided into two clusters, supporting both digital asset mining and AI computing in parallel, Shchepinov explained.
Some losses
At the same time, Ogienko noted that a number of traditional data center operators deploy digital asset mining equipment on their premises. This is often done to supplement idle sites and conduct electrical and thermal load testing, the expert said. He explained that, therefore, a ban on digital asset mining in traditional data centers would hinder this activity and cause some financial losses for businesses.
"In my opinion, after the bill's adoption, most traditional data center operators will seek to join the specified registry. The goal is to maintain competitiveness and receive government support, both in the form of direct subsidies and reduced electricity bills," the expert says.
At the same time, industrial digital asset mining operators with their own data centers will not be able to be included in the registry, as they do not possess the same level of reliability as traditional data centers (backup generation, uninterruptible power supplies, more complex air conditioning systems, more advanced fire suppression systems, and other criteria), Ogienko added.
If industrial digital asset miners are not included in the registry, their chances of receiving even a tariff via the unified power grid will be virtually nonexistent, the expert believes. He believes this means electricity costs for industrial digital asset mining facilities will increase, and their financial stability will decline.
Shchepinov noted that the key point of the law is indeed the ban on hosting digital asset mining infrastructure in traditional data centers receiving state support. He argued that this is an important and fair restriction: it prevents a situation in which traditional data centers claiming benefits as IT infrastructure are actually used for digital asset mining.
"This approach creates transparent and competitive conditions for participants in both areas: both traditional IT companies and digital asset mining infrastructure operators," the expert believes.
The bill, prepared for the second reading, proposes classifying traditional data centers as communications facilities and defining them as “a set of buildings or premises used to house equipment for processing and storing data.”
The Ministry of Digital Development, Communications and Mass Media of the Russian Federation will maintain a registry of traditional data centers, and their owners will be able to voluntarily join the registry. However, such data centers included in the registry will be prohibited from hosting digital asset mining infrastructure and digital asset mining cryptocurrency.
Digital asset mining industry experts told RBC-Crypto how this could impact industrial digital asset mining in Russia and what changes the market will see if the bill is adopted in its current form.
Expected measure
The bill to support traditional data centers was passed in its first reading back in 2022, but that version did not include a ban on digital asset mining. Nevertheless, according to Artem Shchepinov, GR Director at Intelion, the final adoption of the document is an expected measure. This step is important in terms of establishing Russia's technological sovereignty and strengthening its regulated digital infrastructure, the expert explained.
However, the bill was not posted for public comment on regulation.gov.ru, notes Oleg Ogienko, an independent expert on blockchain, energy, and digital finance. Consequently, it did not receive a full response from businesses and the general public, but perhaps there were reasons for this, he added.
If the bill is passed in the version currently under discussion, the industrial digital asset mining industry, as well as the traditional data center industry itself, could suffer, Ogienko believes. However, Shchepinov believes the law's impact on the industrial digital asset mining sector will be limited.
Self-sufficient industry
The digital asset mining industry in Russia is self-sufficient and sustainable, says a representative of a digital asset mining data center operator. He adds that the industry requires no government support and generates revenue for the power grid, as well as federal and regional budgets.
The versatility of industrial digital asset mining data center infrastructure has already been confirmed by relevant research, including the Moscow Institute of Physics and Technology's "Data Center 2.0: Mining and Artificial Intelligence" study and a review by the Analytical Center under the Government of the Russian Federation. For example, the Intelion data center in the Samara region is divided into two clusters, supporting both digital asset mining and AI computing in parallel, Shchepinov explained.
Some losses
At the same time, Ogienko noted that a number of traditional data center operators deploy digital asset mining equipment on their premises. This is often done to supplement idle sites and conduct electrical and thermal load testing, the expert said. He explained that, therefore, a ban on digital asset mining in traditional data centers would hinder this activity and cause some financial losses for businesses.
"In my opinion, after the bill's adoption, most traditional data center operators will seek to join the specified registry. The goal is to maintain competitiveness and receive government support, both in the form of direct subsidies and reduced electricity bills," the expert says.
At the same time, industrial digital asset mining operators with their own data centers will not be able to be included in the registry, as they do not possess the same level of reliability as traditional data centers (backup generation, uninterruptible power supplies, more complex air conditioning systems, more advanced fire suppression systems, and other criteria), Ogienko added.
If industrial digital asset miners are not included in the registry, their chances of receiving even a tariff via the unified power grid will be virtually nonexistent, the expert believes. He believes this means electricity costs for industrial digital asset mining facilities will increase, and their financial stability will decline.
Shchepinov noted that the key point of the law is indeed the ban on hosting digital asset mining infrastructure in traditional data centers receiving state support. He argued that this is an important and fair restriction: it prevents a situation in which traditional data centers claiming benefits as IT infrastructure are actually used for digital asset mining.
"This approach creates transparent and competitive conditions for participants in both areas: both traditional IT companies and digital asset mining infrastructure operators," the expert believes.
Link for the original article: RBC