In an unprecedented move within the rapidly evolving tech landscape, CleanSpark has secured a 100-megawatt data center site in Cheyenne, Wyoming, defeating tech giant Microsoft in the bidding process. The Las Vegas-based bitcoin mining company clinched this significant contract, a testament to its strategic advantage and agile operational capacity, despite Microsoft boasting a staggering $4 trillion market cap compared to CleanSpark’s under $6 billion.
At the heart of CleanSpark’s victory lay its ability to deploy infrastructure within six months, a remarkable feat when traditional AI data centers require anywhere from three to six years for construction. This rapid deployment model is becoming increasingly critical as demand for AI and data processing capabilities surges in the face of evolving technological needs.
CEO Matt Schultz discussed this landmark achievement on CNBC’s Crypto World, highlighting the efficiency that CleanSpark’s infrastructure scaling brings to the table: “Certainly, Cheyenne didn’t select CleanSpark because we had a stronger balance sheet than Microsoft. Our rapid infrastructure scaling capabilities provided the competitive advantage.”
CleanSpark, which transitioned from an energy company to a bitcoin mining powerhouse five years ago, currently operates 1.03 gigawatts of energized facilities, with an additional 1.7 gigawatts in the development pipeline. The company’s model ingeniously leverages bitcoin mining profits to build essential power infrastructure rapidly.
The targeted expansion strategy is exemplified by its focus on Atlanta, emerging as a key market due to its ranking as the second-largest AI data center hub on the East Coast, trailing only Northern Virginia. Recognizing the synergistic potential of blending bitcoin mining with high-performance computing, CleanSpark aims to capitalize on this growing intersection.
Critical Power Infrastructure for the AI Boom
The necessity for extensive power resources in training and operating AI models is pushing companies such as Amazon, Google, and Microsoft to invest record amounts in new data centers. Despite signing agreements with utility companies, these tech giants are facing considerable delays connecting to the power grid, further underscoring CleanSpark’s value proposition.
Schultz noted that bitcoin miners like CleanSpark possess vital assets—land, substations, and direct access to electricity—that are challenging for hyperscalers to obtain. “Hyperscalers are spending 60% of their free cash flow on capex to try and keep up with AI,” he added, emphasizing the infrastructural advantage bitcoin miners hold.
This week, CleanSpark also announced a partnership with Submer, a data center design firm, to develop AI-focused campuses across North America. This collaboration will merge CleanSpark’s energy and land portfolio with Submer’s advanced liquid-cooled infrastructure systems, allowing them to create cutting-edge data centers tailored for AI demands.
This strategic pivot into AI is beneficial for CleanSpark, especially against the backdrop of declining margins in the crypto sector, post-April’s bitcoin halving which saw block rewards slashed in half. In its latest quarter, CleanSpark reported a remarkable $198.6 million in revenue, a staggering 91% year-on-year increase, underscoring the company’s robust growth trajectory as its shares have soared more than 100% this year.
Flexible Operations Support Grid Stability
Another aspect that sets CleanSpark apart is its operational flexibility. The company’s mining operations can voluntarily shut down during times of grid stress, diverting electricity back into the system—something AI data centers typically cannot do due to their stringent uptime commitments. Schultz elaborated on this capability, stating, “Blending a bitcoin mining facility with an AI data center provides the ‘interrupt’ ability that utilities desperately need.” In instances of grid demand spikes, CleanSpark can quickly adjust its operations to alleviate pressure.
This flexible model proved its worth during Hurricane Helene, when CleanSpark proactively powered down its mining rigs to redirect energy to support local infrastructure recovery efforts. Such responsiveness is critical as annual electricity consumption in the U.S. reaches unprecedented levels, with soaring demands from both data centers and the AI sector.
As CleanSpark and Submer work towards finalizing agreements for the AI data center initiative, the prospect of their collaboration signals a pivotal moment for both companies in the burgeoning intersection of cryptocurrency mining and artificial intelligence.
