Bitcoin mining has long faced criticism over its high energy consumption. A Canadian project, however, shows that computing power does not have to represent pure cost—it can also become a practical source of heat for the real economy. Hardware manufacturer and crypto miner Canaan is launching a pilot program in Canada that uses waste heat from bitcoin mining to heat greenhouses.

Waste heat instead of fossil fuels

Canaan is participating in a three-megawatt (3 MW) proof-of-concept project in cooperation with investment firm Bitforest Investment. The project will operate in the Canadian province of Manitoba and aims to capture heat generated by Avalon computing systems and reuse it as a supplementary energy source for greenhouse operations.

The pilot phase is scheduled to run for 24 months. A key role is played by liquid cooling technology, which allows mining servers to efficiently collect excess heat and use it to preheat water entering the greenhouses. This reduces overall heating energy demand while lowering reliance on fossil fuels.

According to Bitforest, the project focuses on greenhouse tomato production, which is particularly energy-intensive in Canada’s cold climate.

“This is not a single project but a model”

“With this proof-of-concept, we are not deploying computing infrastructure for just one isolated project. Our goal is to create a data-driven and replicable model,” said Canaan Chairman and CEO Nangeng Zhang.

He added that the initiative will enable measurement, modeling, and future scaling of heat recovery systems for agriculture in colder regions. The project aligns with the company’s broader strategy of exploring how computing infrastructure can contribute to energy sustainability for households, businesses, and industrial partners.

A total of 360 liquid-cooled servers will be deployed as part of the pilot. Heat that would otherwise be wasted will instead be reused as an energy source for greenhouse farming.

Greener bitcoin mining gains momentum

Canaan is not alone in its efforts to reduce the environmental footprint of bitcoin mining. The company previously announced the launch of a mining facility in Texas powered by wind energy.

Other firms are following similar paths. Phoenix Group is building a 30 MW mining facility in Ethiopia using hydropower, while Sangha Renewables has launched a 20 MW solar-powered operation in Texas.

The push for efficiency comes as mining costs continue to rise. Bitcoin mining difficulty reached all-time highs in 2025 and is expected to increase further in the coming months.

Sources:

https://www.prnewswire.com/news-releases/canaan-inc-expands-energy-efficiency-initiatives-with-3-mw-compute-heat-recovery-proof-of-concept-at-canadian-greenhouse-302653360.html

https://www.bitforestinvestment.com/article/加拿大-222560

https://www.coinwarz.com/mining/bitcoin/difficulty-chart