There are no regulations specifically for cryptocurrencies in Costa Rica, but the country has already adopted the first cryptocurrency as legal tender. The country’s central bank says that the Fintech industry is an emerging sector and that it supports technological innovation. All the customers at the Data Center CR are locals, including Mauricio Rodriguez, a computer security engineer. The average equipment cost for cryptocurrency mining is $7,000, about half of what it would cost at home.
Costa Rican hydroelectric company, Data Center CR, has invested $500,000 in hosting digital mining computers. This hydroelectric plant, which is located near the Poas River, was recently rehabilitated after 30 years. But during a pandemic in 2017, the government stopped buying electricity from the hydroelectric plant, causing an oversupply of electricity in Costa Rica. In September of that year, the country began to implement a law making Bitcoin legal tender.
Kopper and his team are working to restore hydropower plants in Costa Rica, where electricity costs are very low. More than 650 machines from 150 customers are currently operating non-stop in eight containers. The facility is being built near a hydroelectric power plant, which was shut down for thirty years due to oversupply. After that, the government has stopped buying power, creating an oversupply of electricity in the country.
The energy supply in Costa Rica is large, which means it could export some of its excess power to Nicaragua, which is a poor country. The hydroelectric plant, which is 35 kilometers from San Jose, feeds hundreds of computers for cryptocurrency mining. However, the plant has recently had to change course and focus on another industry – the Fintech industry. The company now plans to build a Bitcoin farm in the area, as well as a new crypto mining facility at the site.
The Costa Rican hydroelectric power plant is being repurposed to host cryptocurrency mining. The facility is situated on the Poas River, 35 kilometers from the capital, and powers eight containers and 650 computers from 150 customers. The government no longer buys electricity from the hydroelectric power plant, as the government’s surplus supply during the pandemic displaced it. It has now been converted into a dedicated hydroelectric plant, known as the Data Center CR. It has a three Megawatt capacity and is investing $500,000 to host cryptocurrency mining computers.
While Costa Rica has a surplus of energy, it is unable to export the surplus power to countries like Nicaragua. This is why it has repurposed a hydroelectric plant to host crypto mining. The data center uses electricity from the same source as Costa Rica’s power plant. In addition to the hydroelectric power plant, the government has also invested $500,000 in hosting digital mining computers. The government’s lack of regulation for cryptocurrencies in the country has led to increased international investment in green energy.