H.E Sheikh Mansour Bin Taleb Bin Ali Al Hinai, Chairman of Oman’s Authority for Public Services Regulations, publicly commented about his nation’s government support of privately-owned bitcoin mining facilities, which are set to attract a total investment of over $1.1 billion, “this initiative aligns with our goal to diversify our economy, integrating modern technologies while upholding our commitment to ethical and sustainable practices.”
Given Oman’s conservative nature and its emphasis on Islamic law, introducing a concept as disruptive as bitcoin mining required significant deliberation. But after rigorous regulatory discussions that started back in 2019, the government of Oman eventually found bitcoin to be in line with Islamic law, accepting the modern innovation into Oman’s deep-rooted traditions.
“Our project transcends the boundaries of traditional mining data centers. By synergizing purpose-built hardware, hyperscale abilities, and smart energy consumption,” Jad Fredrick Kharma, the CEO of Exahertz, told me in an interview. “We’re building a robust framework that is both innovative and sustainable, in line with Oman’s 2040 vision.”
Bitcoin As A Cornerstone Of Oman’s Economic Future
Stepping back, the Sultanate of Oman, a country known for its diverse terrain of desert, mountain ranges, and long coastlines, holds a strategic position on the southeastern tip of the Arabian Peninsula. It’s a small nation of 4.5 million with a rich history of a glorious past. In the 17th century, the Omani Sultanate was contending with the Portuguese and British empires for influence in the Persian Gulf and Indian Ocean. Today, Oman is contending over dominance in the crypto economy.
Oman has the lowest GDP among the oil-rich Gulf Cooperation Council countries. Although the unemployment rate is only 3.7%, the employment opportunities compared to the neighboring UAE are not as abundant or prestigious. According to Kharma, 24% of Omani graduates specialize in computer science, yet only 5% can secure relevant jobs. Technology projects like this one aim to change that.
Oman does have oil reserves, constituting about 70% of its revenue and nearly 30% of its GDP. However, with global shifts towards a digital economy and the decline of oil’s dominance, Oman must set its sails on a journey away from oil.
Investing In Bitcoin Infrastructure And Renewables
In this context, Oman’s forward-thinking vision has paved the way for Exahertz, a homegrown startup, to take center stage in this digital evolution. The ambitious establishment of a pilot bitcoin mining site of 11 MW capacity, coupled with ambitious plans to expand to 800 MW backed by a staggering budget of $1.1 billion, signifies more than just a technological advancement; it lays the groundwork for the technology infrastructure of the future.
This has been a long time coming. Exahertz received its license from local regulators in September 2022 and delivered an operational pilot within 22 days.
Now, with the Exahertz’s facilities built out in a modular fashion that can be scaled to support the electrical grid and prevent overburdening, there are also approved plans to tap into wasted flared gas and develop new sources of hydroenergy.
Stabilizing the grid is a prime concern in this era of prudent energy consumption. Bitcoin mining, with its ability to function as a “load balancer” for power networks, can aid in reducing fluctuations in electricity supply. By adjusting mining intensity based on the available energy, these operations can help in maintaining a stable power supply, thereby ensuring grid stability.
“Our blueprint for future expansion prioritizes eco-centric operations. Utilizing gas flares and hydroenergy underscores our dedication to fostering a green, sustainable digital economy,” Kharma told me in an interview.
Beyond Bitcoin: Building A Digital Ecosystem
The grand vision extends beyond just bitcoin mining. The infrastructure laid out for this project serves as a foundation for future technological endeavors. With the capacity to house massive data centers for supercomputers and facilitate machine learning projects, Oman is gearing up to be at the forefront of the digital advancement.
To many, Oman today echoes the vibes of Dubai from three decades ago – ripe with opportunities and potential. As Oman transitions from its traditional oil-centric economy, endeavors like this bitcoin infrastructure project signal the nation’s readiness to embrace the future.
“Bitcoin represents more than a digital currency,” Kharma said. “Its open ledger system is a significant leap for civilization, ushering in a new era of transparency and innovation.”
Oman’s national economic narrative is undergoing a transformation. As the desert winds continue to narrate tales of its rich past, the hum of the newly built bitcoin mining facilities indicates a future filled with promise of prosperity for the nation and digital transformation. Through this harmonious blend of tradition and innovation, Oman is poised to etch its mark on the global digital map, mining not just the oil beneath its sands but also the digital gold of our times.
