• Kraken considers using nuclear energy to power its data centers.
  • The crypto exchange wants to partner up with energy suppliers that can provide small modular reactors.
  • The company is looking at nuclear energy options in North America, Europe and Asia.

Vishnu Patankar said that Kraken was considering the use of nuclear energy for its data centers. This is due to an anticipated boom in Decentralized Finance and an increased demand for their services.

Kraken does not plan to build its reactors but may partner with energy providers who can provide nuclear power using small modular reactors. Patankar says that these reactors are able to be located alongside data centers, and they don’t face any space or weather restrictions.

Kraken’s CTO stated that “as institutions move into crypto assets and as activity moves on-chain, there is a growing need for fiat onramps.” “By strengthening our energy resilience, we support the continued growth of the crypto ecosystem by providing a direct route into it.”

Patankar, a crypto exchange representative, said that the crypto exchange was looking to secure the energy supply due to the huge surge in demand for artificial intelligence (AI), high performance computing (HPC), and other firms. This is changing the landscape when it comes power stability.

Kraken explores nuclear energy options in North America, Europe and Asia.

Patankar explained that “Crypto is a global currency, which means Kraken requires a constant energy supply. This is especially true as we facilitate an increasing proportion of the global trading volume.” Kraken, due to the demands of running a 24/7 cryptocurrency business as well as the expected mass adoption of crypto in time, is looking into how it can scale up its business with regards to energy supply and latency.

Nuclear Backlash

Kraken’s exploration comes at a time when more tech companies are exploring deals with nuclear operators in order to power the data centers required to meet artificial intelligence demands. The Wall Street Journal reported on Tuesday that this trend is becoming more apparent as firms such as Amazon Web Services seek to secure contracts with nuclear plants in order to power data centres.

Core Scientific (CORZ) signed a a href=”https://www.coindesk.com/business/2024/06/04/bitcoin-miner-corescientific’s-surges after ai deal, report of over-1b buyout offer from coreweave/”>u>deal/u>/a> with artificial intelligence firm CoreWeave earlier this month. Core Scientific (CORZ), a subsidiary of CoreWeave, signed a agreement earlier this month.

Patankar noted that “a nuclear backup allows Kraken to continue operating even if the local energy supply is disrupted.” He added that it “adds redundancy to our energy resilience so we can offer our products and services around-the-clock to our global clients.”

Patankar stated that Kraken expects a huge boom in DeFi, whether it is running nodes as validators or transactions. The firm’s future energy requirements could be exponentially greater.

Patankar stated that although a final decision had not yet been made, Kraken would definitely consider nuclear power because other options such as solar and wind are weather-dependent and energy storage is also a challenge.

The crypto industry has been criticized for its excessive energy consumption, as proof-of stake blockchains like Bitcoin require a lot of processing power. Nuclear energy is also viewed negatively, but for different reasons. In this case, it could be an environmentally-friendly solution. The excess energy generated by the nuclear reactors can also be used to power cooling systems in data centers.