Crypto exchange Kraken is exploring utilizing nuclear energy to tap into a constant stream of power to keep its operations up. As the power consumption of AI companies increase, Kraken feels it is best to explore alternate sources to cover periods of power scarcity.
It plans on partnering with those operating small modular reactors rather than building and utilizing its own. Since Kraken operates 24/7 globally, dealing with some of the largest volumes of crypto a Centralized Finance (CeFi) firm does, it needs considerable power to let users access its products and services without trouble.
Vishnu Patankar, Kraken CTO, stated, “Crypto’s round-the-clock and global nature means Kraken needs a constant supply of energy, particularly as we facilitate a larger proportion of global trading volumes.”
Currently, Decentralized Finance (DeFi) usage has also spiked, leaving Kraken dealing with many clients harnessing the DeFi integrations on its platform. All that adds up, leaving a firm like Kraken needing an uninterrupted power supply.
Patankar feels Kraken’s spot as a top service provider in the industry makes it a ramp for retail and the droves of institutional investors entering the market. Kraken’s services help them access crypto and the Web3 ecosystem. So, it needs to tap into sources like nuclear energy to meet its power requirements always.
“Bolstering our energy resiliency means we strengthen a direct avenue into the crypto ecosystem, supporting its continued growth,” Patankar said.
Kraken is not alone in considering this option. Some of the biggest tech companies, including the likes of Amazon Web Services, are looking into nuclear energy to meet their tremendous power requirements.
The burgeoning AI industry has all tech-related companies considering how they can meet their energy requirements. Many Bitcoin mining firms are partnering with AI firms to provide the power to meet their immense requirements to power highly demanding computations.