Bitcoin mining companies flock to AI... Buterin: "Slow down data center expansion"

▲ Vitalik Buterin, Ethereum AI/ChatGPT generated image ©

Ethereum (ETH) co-founder Vitalik Buterin advocated for slowing down artificial intelligence (AI) data center expansion, stating that technological efficiency and security should be prioritized over indiscriminate infrastructure growth.

According to crypto news outlet CryptoNews on November 8 (local time), Buterin stated on X that he does not agree with strong criticisms against movements opposing large-scale AI data center construction. He explained that if AI algorithm efficiency improves, the same tasks can be performed with fewer computing resources than currently required. He specifically argued that tasks that might require larger and more data centers in two years could be handled by current infrastructure in four years due to algorithmic advancements.

Buterin emphasized that slowing down data center construction would not severely hinder AI technological development. Rather, it would provide time to address cybersecurity threats and potential biological risks associated with the rapid spread of AI. He pointed out that scientific research progress does not solely depend on AI computational power, and a one-year delay in AI development does not necessarily mean an equivalent delay in scientific achievements. However, he did not call for the immediate closure of existing data centers or specific government-level prohibitions.

These remarks come as Bitcoin (BTC) mining companies are rapidly transitioning to AI data center businesses. Riot Platforms announced on the 4th that it had signed a 15-year long-term lease agreement to provide 910 megawatts (MW) of computing capacity at its Corsicana facility in Texas, USA. The estimated revenue from this contract is $28 billion, and the total data center contract capacity, including existing contracts, is 1,151 MW, with long-term contract revenue amounting to approximately $38 billion. Riot secured approximately $1.5 billion by selling 20,264 Bitcoins during the first nine months of this year, primarily investing it in data center development.

Cipher Digital is also expanding its high-performance computing (HPC) business. The company recorded its first HPC lease revenue with the start of rent collection at its Black Pearl facility and extended the lease term for its Barber Lake facility to 20 years, increasing estimated contract revenue to approximately $9.1 billion. The scale of projects currently under development is approximately 5.9 gigawatts (GW). However, community opposition is growing in Texas due to concerns about electricity rates and water shortages. Governor Greg Abbott ordered a temporary halt to relevant permits in September to review the impact of data centers on grid stability and water resources.

Regulatory uncertainty further expanded when Gina Hinojosa, who won the Texas gubernatorial election on the 3rd, proposed halting new data center approvals until community safeguards are in place. Cipher Digital's stock price plummeted by approximately 19% the day after the election results, but Hinojosa's proposal to halt new approvals has not yet been codified into state law. Buterin has consistently shown interest in related risks, including testing AI tools focused on privacy, and this time again, he stated that the pace of large-scale AI infrastructure expansion should be adjusted to allow time to prepare for cybersecurity and potential biological threats.

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