Green Data City, based in Muscat, has partnered with Abu Dhabi’s Phoenix Group to build a $300 million cryptocurrency mining farm in Oman. The 150-megawatt facility, set to be one of the biggest crypto mining centers in the region, will be located in Green Data City. It is expected to be fully operational by the second quarter of 2023.
Cryptocurrency mining farms are large facilities that use complex networks of software and hardware to mine digital currencies like Bitcoin and Ethereum. This process requires solving complex math problems that demand immense computing power, resulting in very high energy consumption.
Founded in 2016, Phoenix Group operates 725MW of mining facilities globally, including in North America and the UAE. It is the exclusive distributor of MicroBT mining equipment. Oman was chosen for the new mining farm due to the long-term stability provided by Green Data City’s mining license and the country’s comparatively cooler climate, which reduces energy needs.
Green Data City has Oman’s first license for sustainable crypto mining, granted in March 2022. Under this license, mining companies can register directly with the city. The first phase of the city’s development includes 200MW of mining capacity, eventually expanding to 400MW.
The new facility will use modular units to minimize land impact. Solar shades will be installed and local technicians hired. Through partnerships with Omani universities, students will gain exposure to cryptocurrency mining operations. The long-term goal is to strengthen the country’s capabilities in cryptocurrencies and next-generation finance.
Overall, the crypto industry has declined in value since last year, with Bitcoin falling from a peak of nearly $68,000 to under $16,000 in November 2022 after various industry turmoil. It has since recovered somewhat to around $26,020.
Oman’s economy remains strong, aided by favorable oil prices, fiscal reforms, and low inflation. The IMF expects 1.1% GDP growth in 2023, down from 4.3% in 2022, due to lower oil output. Non-oil growth is projected at 2.3%, driven by construction industry recovery.
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