Converting a bitcoin data center into an AI-focused data center: unlocking potential through strategic transformation

In recent years, AI has garnered significant attention across industries. From music production and film to healthcare, biomedical, and even banking, organizations are eager to adopt AI to improve operations.

This trend is highlighted by industry leaders such as Jamie Dimon, CEO of JP Morgan Chase, who recently said the bank employs approximately 2,000 people focused on AI, with expectations that this number will grow to 5,000 in a couple of years.

The data center industry is also experiencing this growth, with increasing demand for space, power, and cooling to support the expanding needs driven by AI.

Power density evolution

In a recent article about the evolution and revolution of power density in data centers, I compared different decades using density specifications (kilowatts (kW) per rack). Initially, I discussed a maximum of 100 kW per rack, but shortly after, a meeting with a client looking for 200-300 kW per rack prompted adding “+” to the 100 kW title.

Recent discussions have even considered up to 800 kW per rack. Whether this is a feasible advancement or an impractical idea to move to 800+ kW per rack remains to be seen, and only time will tell.

Power availability and site selection

Continuing with the AI trend, companies are increasingly seeking available power to build data centers. Historically, the process involved selecting a site, adding a substation, and requesting power from the utility company. Today, however, power requirements have shifted from being a commodity to a highly demanded asset.

Utility companies are struggling to meet growing demand from data centers, prompting a trend where data center owners are searching for other site locations, such as converting old power plants to data centers, or seeking alternative power sources like natural gas, hydroelectric, wind, solar, or even micro nuclear reactors.

Potential of bitcoin mining data centers

In June, Core Scientific, Inc., one of the largest owners and operators of bitcoin mining, signed a 12-year contract with an AI hyperscaler to deliver 200 megawatts (MW) of power for their AI operations.

Recently, there’s been growing interest from bitcoin mining data centers in transitioning to the broader data center market. These facilities already have significant power capacity, and with the right retrofitting or upgrades – such as enhancing redundancy and resilience in power and cooling systems – they can transition to AI-focused data centers. Necessary retrofitting might include upgrading electrical infrastructure, enhancing cooling systems, and implementing more resilient specifications.

Conclusion

Years ago, we developed a comparative chart of different data center types to illustrate their distinctions.

While converting a bitcoin data center into an AI-focused data center is possible, several elements must be addressed, requiring significant investment and a revision of the existing crypto mining business portfolio. This investment involves not only retrofitting the facility but also managing the operating costs. Typically, a crypto mining facility lacks the building reliability, backup power, and cooling infrastructure required for an AI-focused data center.

With support from consultants like Ramboll, we can evaluate the available, viable options and assess the total cost of ownership (TCO) for converting these data center facilities.

> Sign up to receive updates, insights, and perspectives from our experts related to data centers and mission critical facilities.