According to CEO Phil Harvey of blockchain data center consulting firm Sabre56, converting crypto mining sites to AI data centers is not a seamless process. Harvey stressed that running an AI or high-performance data center is substantially more expensive than running a crypto mining facility, with a 10-15x increase in costs per megawatt.

The CEO explained that a typical commercial mining operation costs between $300,000 and $350,000 per megawatt to run, while AI data centers cost between $3 million and $5 million per megawatt. Additionally, a mining operation with a gigawatt of available power will only be able to convert a maximum of roughly 200 megawatts of power for high-performance computing needs.

Harvey also noted that physical space is a major concern, with crypto mining requiring 1,000 square feet per megawatt, compared to 5,000 square feet per megawatt for AI or HPC data center applications. Furthermore, converting crypto mining facilities to AI and high-performance data centers carries significant upfront costs, as 90% or more of a mining company's existing infrastructure would have to be replaced.

Source: https://cointelegraph.com/news/converting-mining-sites-ai-data-centers-not-seamless-sabre56-ceo

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