Marathon Digital has reached an agreement with the Ministry of Energy and Petroleum of Kenya to invest over $80 million in energy infrastructure, focusing on green data centers.
The initiative aims to harness underutilized renewable energies in Kenya, as the country aims to achieve 100% renewable electricity production by the end of the decade.
Shares of Marathon Digital rose by 6% following the announcement of this agreement.
Marathon Digital, a Bitcoin mining company, has announced an agreement with the Ministry of Energy and Petroleum of Kenya to invest over $80 million in the country’s energy infrastructure.
This partnership aims to harness underutilized energies across Kenya and jointly develop technological projects, according to Marathon CEO Fred Thiel.
Investment in Green Data Centers
According to a Marathon press release, this investment will focus on green data centers. Although the sources of the funds have not been specified, the company has emphasized that the capital will include foreign investments.
With projected foreign investments exceeding $80 million, this company is poised to bring economic benefits to the Kenyan economy and generate revenue for the local energy sector ecosystem.
Renewable Energy Management and Digital Asset Regulation
Earlier this month, Marathon initiated discussions with the Kenyan government to help manage its renewable energy operations and advise on its digital asset regulatory framework. Renewable energy is the primary source of electricity in Kenya, accounting for 80% of all electricity production in 2022, with plans to increase its share to 100% by the end of the decade.
However, renewable energy sources such as solar and wind are intermittent, meaning they do not produce energy when consumption is highest.
Optimizing Renewable Energy Projects
The agreement between Marathon and Kenyan decision-makers aims to better understand how to optimize renewable energy projects that generate surplus energy due to intermittency and seasonal variations.
Building infrastructure for renewable energy is capital-intensive and requires an energy management system to properly store and distribute the energy.
