Despite the expansion, APLD shares dropped 5.3% on Friday. A new 200-megawatt (MW) data centre has been launched in Garden City, Texas, by Applied Digital, a provider of artificial intelligence (AI) and blockchain infrastructure.
This facility is the firm’s third blockchain hosting facility to be introduced in the United States.The firm’s statement on Friday showed that after full energization, the location will take Applied Digital to the planned 480 megawatts of overall hosting capacity across the blockchain hosting space.
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A megawatt (MW) is a power unit equivalent to a million watts, while a gigawatt (GW) equals a billion watts. An example of another publicly traded Bitcoin (BTC)miner is Riot Blockchain.
Presently, it also has a 1 gigawatt mining facility in Texas.For context, 60 watts power a normal home light bulb. In the meantime, Cambridge approximates that the whole Blockchain network presently demands 14.83 gigawatts, an increase from last month’s approximation of 12.89 gigawatts.
BTC miners utilize this kind of power to generate hashes. These are required to create the network’s subsequent transactions block, for which miners are given freshly made Bitcoin. BitInfoCharts reveals that BTC’s hash rate is nearly 400 exahashes every second (EH/s).
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A quintillion hashes make one exahash. Wes Cummins, Applied Digital’s chief executive officer and chairman, told a media outlet that based on the miners’ model, the facility will support 7 to 8.5 EH.
Nevertheless, none of the hash rates is intended for the firm. According to Cummins, his company solely hosts ‘other miners,’ which means other firms own the rigs housed and run by Allied on their behalf. Further, during the quarter concluding in May this year, the business enabled Applied Digital to generate revenues of up to $22M.
Like several mining companies, Applied Digital is shifting its attention from BTC mining to high-performance computing (HPC). This refers to an additional energy-intensive service backing the artificial intelligence field. The move is set to tap into the booming race towards unveiling superior generative AI.
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Like mining, high-performance computing needs access to cooling systems, big data centres, and inexpensive energy to run successfully. Adam Sharp, Hive Digital Research Director, said that compared to BTC mining, HPC-cloud services have ‘higher profitability per unit of energy.’
Cummins claimed they are directing all new expansions on HPC artificial intelligence workloads. However, investors do not seem to be convinced. On Friday, Applied Digital Stock, which trades under the APLD ticker, dropped 5.3%.
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