Kraken, one of the leading cryptocurrency exchanges, is considering a groundbreaking move to power its data centers using nuclear energy. In an exclusive interview with CoinDesk, the company’s chief technical officer, Vishnu Patankar, revealed that Kraken is exploring the possibility of partnering with energy providers to supply nuclear power through small modular reactors (SMRs).
The decision comes amidst an expected boom in decentralized finance (DeFi) and increased demand for Kraken’s services, particularly from institutions moving into the crypto asset class. With the surge in demand from artificial intelligence (AI) and high performance computing (HPC) firms, Kraken is looking to secure its energy supply to ensure reliability and stability.
Patankar emphasized the need for energy resiliency to support the growing crypto ecosystem, as well as the constant supply of energy required to facilitate global trading volumes. As more tech companies turn to nuclear power to meet the demands of AI, Kraken sees it as a strategic move to ensure uninterrupted operation and scalability.
While the idea is still in the exploration phase, Patankar highlighted the benefits of nuclear energy in terms of redundancy and energy resiliency. He also addressed the criticism of the crypto industry’s energy usage, noting that nuclear power could potentially be a more environmentally friendly solution, with excess energy being used to power the data centers’ cooling systems.
As Kraken anticipates a significant increase in energy needs due to the expected boom in DeFi, the company is seriously considering nuclear power as a viable option. With alternatives like wind and solar being weather dependent and energy storage posing challenges, nuclear energy could provide a reliable and sustainable solution for Kraken’s growing energy demands.