Kraken is considering using nuclear energy to power its data centers, driven by the rising demand for decentralized finance and its expanding services.
The cleanest power
Kraken’s Chief Technical Officer, Vishnu Patankar, shared in an interview that the exchange is looking into nuclear power to support its operations.
They aren’t plant operators, so instead of building its own reactors, Kraken plans to partner with energy providers using the so-called small modular reactors, SMRs.
These reactors can be located near data centers without space or weather limitations, making them an attractive option.
Reliable energy
Patankar shared that the need for reliable energy as more institutions enter the crypto space is growing.
Ensuring a stable energy supply is number one objective, as it can strengthens Kraken’s connection to the crypto ecosystem and supports its continued growth.
The surge in demand from AI and high-performance computing firms also changed the power stability, prompting Kraken to explore nuclear options both in North America and Europe.
Kraken’s consideration of nuclear power is part of a broader trend among tech companies, as The Wall Street Journal also reported that companies like Amazon Web Services are securing contracts with nuclear plants to power their data centers.
A nuclear energy backup would allow Kraken to maintain operations even during major local energy disruptions.
DeFi is coming back?
With the anticipated boom in DeFi, Kraken expects its energy needs to increase big time, and Patankar highlighted that running nodes for validators and transactions will demand even more power.
Nuclear energy is seen as a viable option because other alternatives like wind and solar are dependent on weather conditions and pose storage challenges.
Kraken’s exploration of nuclear power addresses the criticism that the crypto industry is energy-intensive.
Nuclear energy is one of the cleanest and most environmentally friendly options available, offering a solution to this challenge, and making the industry the most enviroment-friendly in the world.
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