Canaan Secures 4.5 MW Contract for Mining Grid Balancing in Japan
Canaan Inc. has secured a 4.5-megawatt contract to deploy Avalon A1566HA hydro-cooled mining servers in Japan.
- The deployment aims to support real-time grid balancing for a regional utility.
- Scheduled to start by the end of 2025, the project involves an electrical engineering solutions provider managing load fluctuations using Canaan's equipment.
Grid Balancing Technology
- Avalon servers will adjust operations through overclocking and underclocking to address grid fluctuations.
- Each server offers 480 to 500 terahashes per second with a power consumption of 8,064 watts and operates efficiently at 16.8 joules per terahash.
- An intelligent control chip enables adjustments in frequency, voltage, and hashrate, functioning as a digital load balancer.
Nangeng Zhang, CEO of Canaan, mentioned this builds on past initiatives, like one in the Netherlands, amid increasing pressure on national power systems globally.
Japan’s Crypto Policy Context
- This initiative coincides with proposed regulatory changes reclassifying crypto assets as financial products under Japan's Financial Instruments and Exchange Act.
- Proposed reforms include a flat 20% tax on crypto gains and expanded bank participation in digital-asset services.
- TIS launched a token platform to enable Japanese banks to issue stablecoins and security tokens.
Canaan also works on energy-focused projects, such as converting flared gas to electricity for mining, amidst growing competition from AI infrastructure developments.