Bitfarms Secures Approval to Transform Washington Cryptomine into AI Data Center
January 30, 2026
In a significant move emblematic of a broader industry pivot, cryptocurrency mining firm Bitfarms Ltd. has received formal approval to redevelop a former Bitcoin mining facility in Moses Lake, Washington, into a high-performance computing (HPC) and artificial intelligence (AI) data center. This strategic conversion underscores the shifting economic calculus within digital infrastructure, where the explosive demand for AI compute is increasingly drawing investment away from traditional cryptomining operations. According to city planning documents, the Toronto-based company secured the necessary permissions from the City of Moses Lake on January 20, following its initial project announcement in November 2025. The plan involves demolishing the existing structure to construct a new, purpose-built facility slated for completion by December 2026. The proposed data center will occupy a six-acre site and feature a Tier III-certified building spanning up to 100,000 square feet (9,290 square meters), alongside dedicated office space. The location capitalizes on Washington state's favorable conditions for data centers, including a cooler climate and access to relatively low-cost power. The scale of Bitfarms' strategic shift is underscored by its financial positioning and ambitious technical plans. The company has stated its intention to wind down its Bitcoin mining operations globally over the next two years, appointing HPC/AI specialist James Bond to oversee the transition of its facilities across the United States, Canada, and Argentina. For the Washington site, CEO Ben Gagnon outlined a focused strategy, noting, "We continue executing on our HPC/AI infrastructure development strategy with a fully funded supply chain and plan to convert our Washington site to support Nvidia GB300s with state-of-the-art liquid cooling." Gagnon further highlighted the compelling financial rationale behind the pivot, referencing the company's substantial resources, including nearly a billion dollars in cash and unused credit facilities. He suggested that the potential revenue from a GPU-as-a-Service model at this single site could eclipse the company's historical earnings from cryptocurrency mining. This view was reinforced in earlier comments, where Gagnon stated that despite the Washington site representing less than one percent of Bitfarms' total developable portfolio, its conversion "could potentially produce more net operating income than we have ever generated through Bitcoin mining." The company reported a net loss of $46 million in its latest third-quarter earnings, a factor likely accelerating its strategic redirection. The project signals a growing trend of infrastructure originally built for energy-intensive blockchain validation being repurposed for the computationally demanding world of AI. This transition not only reflects the search for higher, more stable returns but also the functional overlap in requirements for power, cooling, and real estate between the two sectors. The development adds to the concentration of data centers in the Pacific Northwest and will be a key point of discussion during Bitfarms' upcoming Q4 2025 earnings call in March. Source: datacenterdynamics
