Kraken Considers Nuclear Energy to Power Data Centers

Kraken is contemplating the use of nuclear energy to power its data centers, in light of the anticipated growth in decentralized finance (DeFi) and the increasing demand for its services. Chief Technical Officer Vishnu Patankar revealed in an exclusive interview with CoinDesk that the company is exploring potential partnerships with energy providers that can offer nuclear power through small modular reactors (SMRs). These reactors, which can be situated alongside data centers, do not face space or weather constraints.

“With institutions entering the crypto asset class and activities shifting on-chain, the necessity for reliable fiat onramps is expanding,” mentioned Kraken’s CTO. “Enhancing our energy resiliency establishes a direct path into the crypto ecosystem, supporting its ongoing expansion.”

The crypto exchange is seeking to secure its energy supply due to the significant surge in demand from artificial intelligence (AI) and high-performance computing (HPC) firms, which is reshaping the power stability landscape, according to Patankar. Kraken is investigating nuclear power options in North America and Europe.

“The global and round-the-clock nature of crypto necessitates a continuous energy supply for Kraken, especially as we facilitate a larger portion of global trading volumes,” Patankar explained. Considering the 24/7 requirements of operating a cryptocurrency business and the anticipated widespread adoption of crypto, Kraken is evaluating how it can expand its business in terms of energy supply and latency.

Nuclear Backup Plan

As more tech companies explore collaborations with nuclear operators to power data centers to meet the needs of artificial intelligence, Kraken’s exploration of this concept aligns with the trend. The Wall Street Journal recently reported on firms like Amazon Web Services seeking agreements with nuclear plants to power data centers.

The escalating demand from power-intensive AI companies has led bitcoin miners to shift their focus from crypto mining to providing infrastructure for these firms. Core Scientific (CORZ) recently secured a deal with artificial intelligence company CoreWeave.

“Having a nuclear backup ensures that Kraken can continue its operations even in the event of a major disruption to local energy supply,” highlighted Patankar. “It introduces redundancy and safeguards our energy resiliency, enabling us to deliver products and services around the clock to clients worldwide.”

While a final decision is pending, Kraken is actively considering nuclear power as an option, as alternatives like wind and solar energy are weather-dependent and energy storage presents challenges. Despite criticisms about the energy consumption of the crypto industry, nuclear energy could offer a more environmentally friendly solution in this case. Excess energy produced by the reactors can be utilized to power the data centers’ cooling systems.