cryptopolitan.com
The Russian government, alongside its largest crypto mining company BitRiver, is moving forward with plans to build crypto mining data centers in BRICS countries.
These countries—Brazil, Russia, India, China, and South Africa—are now part of Russia’s new strategy to push its mining operations and digital infrastructure to a global level.
The deal is spearheaded by the Russian Direct Investment Fund (RDIF), the state’s sovereign wealth fund. This was announced at the BRICS Business Forum held in Moscow on October 18.
The two entities plan to expand the country’s computing power across borders, tapping into both crypto and artificial intelligence (AI) technologies.
By increasing Russia’s share in global computing, they’re positioning themselves to become a powerhouse in data center infrastructure and AI projects.
Russia backs BitRiver’s big move into BRICS
BitRiver already runs 21 data centers across the East-European country, and it is building 10 more. But that’s not enough. The company’s CEO, Igor Runets, confirmed that they’re now eyeing BRICS countries for their next phase of expansion.
“Together with the Russian Direct Investment Fund, we will focus on creating an infrastructure base founded on [crypto] mining. We will build data centers and connect them to the appropriate capacities. That will let us deploy and implement AI projects,” he said.
So, why BRICS? Simple. There’s a global shortage of energy-intensive data centers. Crypto mining needs a ton of electricity, and the world is running out of places with enough space and energy to support the infrastructure.
That’s where Russia steps in, using its experience to build more data centers, not just for crypto but for AI too.
Though there’s no word yet on specific deals with BRICS nations, Russia isn’t hiding its ambition to create new opportunities in these markets.
The Russian Direct Investment Fund (RDIF) is positioning itself to take advantage of this shortage and grow Russia’s share of the computing power market.
RDIF’s CEO, Kirill Dmitriev, said they’re focusing on expanding the potential of these centers with the possibility of scaling the technologies within BRICS markets. It’s all about future-proofing.
A new power shift?
The RDIF is leading the BRICS Business Council’s financial services and investments working group, pushing to create a joint investment platform.
The goal is to boost high-tech industries like AI and crypto in BRICS nations. The group believes this could increase their collective GDP by 1.2%, or $370 billion per year.
Russia’s recent pivot towards crypto mining is no secret. The country has made public statements urging caution with cryptos, but behind the scenes, it is putting serious money into it.
Moscow is ready to support mining as a key driver of economic growth. The Energy Ministry has said it’s ready to provide surplus power to miners, making it clear that Russia is in this for the long haul.
Sanctions, Bitcoin, and geopolitics
As the BRICS summit kicks off in Kazan, Russia, crypto is on the table. Top lawmakers are pushing the idea that Russian miners could sell their tokens to international buyers. These buyers could then use Bitcoin and other cryptos to pay for imports, effectively bypassing Western sanctions.
Sanctions have hit Russia hard, but crypto provides an alternative to traditional financial systems that rely on the US dollar and banks.
Richard Wolff, a U.S. economist and professor emeritus at the University of Massachusetts Amherst, weighed in on the situation to say that the BRICS coalition is gaining ground over the United States, which has peaked.
“We are on the way down… and we try to hold on,” Wolff said, referencing the decline of American global dominance.
He pointed out that the United States has lost major wars in Vietnam, Afghanistan, and Iraq, and that despite the US’s unconditional support for Israel, the Middle Eastern country is unlikely to maintain control over the region in the long run.
Wolff also noted that BRICS nations are also gaining an edge over the US economically.
Brazil’s President Luiz Inacio Lula da Silva, though sidelined from this year’s summit due to health issues, supports these developments and will join the summit via video call.