Key conclusions

• Bitcoin mining produces vast amounts of heat, which is usually treated as waste. In icy regions, this thermal power is currently being tested as a useful resource.

• A pilot project in Manitoba integrates Bitcoin mining with greenhouse farming, reusing server heat as a supplemental heating source for agriculture.

• Liquid-cooled mining systems are generally associated with higher and more stable heat capture, making the recovered thermal energy suitable for industrial heating applications.

• Reusing mining heat can reduce operating costs for both miners and greenhouse operators by improving energy efficiency and reducing dependence on fossil fuels.

Bitcoin (BTC) mining has faced criticism for using vast amounts of electricity and producing significant amounts of heat, which is usually treated as waste and must be cooled or disposed of. In colder regions, this heat is currently being tested as a potentially useful by-product.

In Manitoba, Canada, a pilot project is testing whether heat generated by bitcoin mining can be reused to support greenhouse farming. Integrating bitcoin mining with greenhouse farming offers a practical way to reuse the heat generated during the mining process.

This guide discusses a pilot project in Manitoba and explores how thermal waste from digital infrastructure can be reused. It also outlines how improving thermal efficiency can facilitate reduce Bitcoin mining operational costs, while discussing emerging mining-integrated heating models and their limitations.

Reusing thermal waste from digital infrastructure

Bitcoin mining relies on specialized hardware that performs a vast number of calculations to secure the network and confirm transactions. This continuous processing generates a significant amount of heat, similar to data centers, but often at a higher power density.

Traditionally, miners employ fans or cooling systems to remove this heat. In colder climates this creates a paradox. Electricity is used to generate heat and then additional energy is used to dissipate it. Even in regions where nearby buildings require heating most of the year, simply getting rid of heat may seem unproductive.

This has led some mining companies to ask a plain question: why not reuse the heat instead of dissipating it? This line of thinking is at the heart of efforts to integrate Bitcoin mining with greenhouse farming.

Did you know? In some parts of Finland and Sweden there is waste heat from conventional data centers used to heat entire residential districts through municipal heating networks.

Manitoba Pilot: Canaan and Bitforest Collaboration

A pilot project in Manitoba brings together equipment manufacturer and mining company Canaan with Bitforest Investment, a company focused on sustainable infrastructure and agriculture.

The project works ok 3 megawatts (MW) of mining capacity and is planned as a 24-month proof of concept. Its goal is not only to demonstrate technical feasibility, but also to collect data that can facilitate determine whether the model can be scaled to larger agricultural or industrial applications.

Instead of typical air-cooled mining machines, the system uses liquid-cooled servers from Canaan’s Avalon series. Approximately 360 extraction units have been installed and are connected to a closed-loop heat exchange system that transfers heat to the greenhouse’s hydronic heating infrastructure.

Instead of completely replacing existing heating systems, mine heat is used to preheat incoming water. This can reduce energy demand from conventional boilers, especially in the colder months.

Synergy between Bitcoin mining and greenhouse farming

Greenhouses require constant, continuous heating, especially in northern regions where winter temperatures can be very low. Tomatoes and other year-round crops are sensitive to temperature fluctuations, so reliable heating is crucial to ensure consistent production.

From an engineering perspective, this constant energy demand aligns well with Bitcoin mining, which produces predictable and continuous heat. When captured effectively, much of the electrical energy consumed by mining equipment can be converted into usable thermal energy.

Liquid cooling plays a key role in this process. Compared to air cooling, liquid-cooled systems capture heat at higher and more stable temperatures, making them suitable for industrial heating applications rather than plain space heating.

Did you know? Some companies sell Bitcoin mining rigs designed to function as home heaters, allowing owners to heat their rooms while mining the cryptocurrency.

Reducing operating costs through thermal efficiency

Heating is a significant operating expense for greenhouse operators. Any reduction in fossil fuel employ can improve profitability while lowering carbon emissions.

For miners, reusing heat can improve overall energy efficiency. It can facilitate raise the profitability of marginal facilities, especially in regions where heat demand is constant and electricity prices remain reasonable.

This is why heat recovery is attracting interest beyond agriculture, including applications in home heating, industrial dryers and district heating networks.

While heat reuse does not eliminate mining’s energy footprint, it can significantly improve the efficiency of using that energy.

Recent operating models in digital mining

The Manitoba initiative is not an isolated case. Across the sector, operators are testing different ways to reduce costs and improve community relations as mining complexity and competition in the industry raise in recent years.

Some mining companies have moved their operations closer to renewable energy sources such as hydroelectric dams, wind farms and solar power plants. Others are developing modular facilities designed to take advantage of excess energy production.

Heat reuse is another element of this strategy, positioning miners as partners in local infrastructure rather than as stand-alone industrial facilities. This approach also reflects trends in the design of state-of-the-art data centers, where waste heat recovery is increasingly being incorporated into urban planning, especially in colder European cities.

Establishing a repeatable heat recovery model in icy climates

Canaan’s main goal is not just to heat a single greenhouse, but to develop a model that can be applied to other icy climate regions.

It involves collecting operational data on:

• Heat capture efficiency

• Reliability of liquid-cooled mining systems

• Integration with existing heating equipment in the greenhouse

• Maintenance and operational complexity

• Overall cost savings compared to conventional heating.

If the economics prove sustainable over time, similar systems could be implemented in the northern US, parts of Europe and other agricultural regions that rely heavily on heated greenhouses.

Did you know? Several French communes did so piloted public swimming pools heated partly by waste heat from servers from nearby facilities.

Limitations of heating integrated with mining

Despite its potential, reusing waste heat is not the solution in every situation:

• The initial cost of liquid-cooled systems and heat transfer equipment is higher than standard mining setups. Without a constant, long-term demand for heat, these costs may not be justified.

• Not every location has the right partners nearby who can employ heat effectively. Since heat cannot be transported over long distances without significant losses, proximity to mining plants and heat consumers is required.

• Agricultural activities depend on reliable availability. Any interruption in mining could impact heating consistency, so backup systems must remain in place.

• Heat reuse does not answer broader questions about energy sources. Environmental benefits are greatest when mining operations rely on low-emission electricity.

Why this matters for Bitcoin’s long-term history

The debate over Bitcoin’s energy is increasingly shifting from total consumption data to how and where that energy is used.

Projects like Manitoba’s greenhouse pilot project suggest that mining infrastructure can be designed to meet, rather than compete with, local energy and heating needs.

If these models prove commercially viable, they could facilitate position mining as part of regional energy systems. Bitcoin mining will no longer emerge as an isolated digital sector, but as an infrastructure layer supporting other economic activities.

Whether integrated heating becomes mainstream will depend on engineering performance, cost trends and long-term reliability.