Costa Rica has run on more than 98% clean energy over seven consecutive years, one of the highest rates of renewable energy generation in the world. Both private and public sectors actively engage in energy generation, being the hydroelectric energy the main source of energy in the country.

However, given that there is a monopoly on electricity distribution, only the Costa Rican Institute of Electricity (ICE) is authorized to sell or export it. In 2020, the ICE began canceling contracts from private generators due to a surplus power supply; therefore, private producers could no longer sell their green energy to anyone else.

In September 2020, while the world was facing a pandemic, Eduardo Kopper, a private energy generator, had to face the most challenging situation. His Company’s energy contracts were also canceled, and he could no longer sell green electricity. By law. That was the big irony that initially trigger the much-needed business transformation, which main objective was to find a new profitable use for 100% of its energy production considering the current electricity market regulations, so they wouldn’t go bankrupt.

The hydroelectric plants had plenty of space, multi-million-dollar assets, and the capacity to generate green energy at a low cost. If direct sales were prohibited, why not rent “spaces” with “free energy”? ... But to whom?

With unique resources, assets, and team capabilities on their side, creativity was the key to solving the problem. Whenever there is an excess supply you need to find a market that is facing shortages. With that in mind, a thorough analysis of possible industries that might be suitable targets was performed.

The planning threw a few questions: How to overcome the monopoly and use the -at that moment- wasted electricity? Who needs cheap clean energy? How to diversify customers? How fast is the decision-making to start working? What new service can be created?

The Cryptocurrency mining market’s rapid growth was being challenged by its energy-intensive by design nature. Bitcoin adds 40 million tons of carbon dioxide a year and consumes more electricity than Argentina. So, the Company used its cost advantage to start renting affordable spaces in custom containers to mine crypto and include the clean energy cost as part of the lease fee. Just what today’s environmentally conscious crypto miners are looking for.

The Company completed an overhaul of the business model to transform the hydroelectric plant into one of the world's first green crypto mining centers powered exclusively by water. A way to transform and future-proof not just the business but Costa Rica's entire approach to its clean energy surplus.

This solution not only saved the Company, but its proven scalability, provides the opportunity to use the energy surplus to potentially position Costa Rica as one of the top green crypto mining countries in the world.

The whole transformation of the first hydroelectric plant took only 2 months to be ready. 10 custom containers were installed to host 700 mining machines. Once the setup was completed, Data Center CR was born.

As the pandemic continues to reinforce remote working, entrepreneurs around the globe found in Data Center CR the possibility to start mining in a greener and more profitable way. The Company was soon operating at maximum capacity and no jobs were lost in the transition. As of today, 3 Costa Rican private hydropower plants are fully operating in the crypto mining business.

After a very successful PR launch campaign, Data Center CR story was featured on more than 50 different websites and news media such as Reuters, Forbes, DW, Vice, Bangkok Post, El País, ANC News, TRT World, News BTC, among many others.

During the PR campaign, the first hydroelectric plant for crypto mining reached 200 new customers with a minimum investment of $15,000 each. Miners are even on a waiting list for future spaces available or new hydropower plants to be ready. The new business model also allowed the Company to grow its profit margin by 200%. As a consequence, given that it evolved from selling a commodity to selling a tech service, Company’s valuation is now 30x its initial investment.

Data Center CR’s leader Eduardo Kopper is now advising the government about blockchain and there are now 2 crypto-related bills in the Costa Rican Congress.