The Zapala Free Zone, an area located in Neuquen, Argentina, which aims to encourage various productive activities, will receive its first investment related to bitcoin mining this year. The company that will create the electrical infrastructure for the mining farm aims to generate more than 114 MW of electricity for mining operations in the first year.
Zapala Free Zone Goes Bitcoin Mining
Zapala, a free trade zone in Argentina’s Neuquen province, will get its first investment related to bitcoin mining. For the year 2023, the area Goals have an installed capacity of 114 MW which will be used for the transformation of the area into a hub for the mining of bitcoins. Bitcoin mining in the region is encouraged as Zapala, being a free zone, does not charge taxes for the use of utilities.
The project, according to a business plan that will be presented to the provincial authorities, foresees an investment of 20 million dollars and is expected to be completed by the first quarter of 2023. The managing director of FMI Minecraft, John Blount, said that this project will be a phased build that will include “a 100MW high-density data center for a BTC processor/data miner, expandable to over 1 GW.
Fernando Montero, CEO of Zapala Free Zone, explained that for this purpose the company needs to lay more than 100 km of gas pipeline in the first year. Montero also explained the benefits of carrying out these projects in the area, stating that:
Being a free zone gives us the advantage of being exempt from taxes for certain projects, which is why it is a very attractive space for investments related to oil and gas, mining and to technology. There is good accessibility and we are in the heart of the province.
Argentina: A Bitcoin Mining Paradise
Argentina has recently been in the sights of bitcoin miners as a location with favorable conditions to conduct their business. Bitfarms, another mining company, is building a large mining center in the country which aims to accommodate 55,000 Bitcoin miners, with a capacity of 210 MW.
Argentina’s main selling point is the low cost of energy used to mine bitcoin, according to reports. Bitfarms reportedly secured a price of 2.2 cents per kilowatt-hour, which company CEO Emiliano Grodzki called an “attractive rate”.
What do you think of the bitcoin mining projects to be developed in the Zapala Free Zone? Tell us in the comments section below.
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