Canaan’s 4.5MW Water-Cooled Bitcoin Miners Boost Japan Grid
Canaan Inc. has secured a 4.5MW contract to deploy hydro-cooled Avalon A1566HA-488T Bitcoin mining rigs in Japan by late 2025. Each unit delivers up to 500 TH/s at around 8,000 W and features a smart control chip for real-time power and hashrate adjustments.
The project, installed at a major utility facility via an engineering partner, uses grid-interactive mining as a digital load balancer. Rigs ramp up during power surpluses and scale back at peak demand to stabilize voltage and frequency. This energy balancing solution supports rising residential, AI, and data centre demands without traditional plants or batteries.
Following a similar rollout in the Netherlands, Canaan plans further deployments in Asia, North America and Europe in 2026. The contract aligns with Japan’s FIEA reforms on digital assets, including a possible 20% tax on crypto gains and new bank services.
Canaan also launched a Canadian flare-gas-to-energy mining project and released its Avalon A16 series earlier this year. This approach marks an innovative use of Bitcoin mining to support energy infrastructure.
Bullish
This news is bullish for BTC. The 4.5MW contract underscores growing real-world demand for Bitcoin mining infrastructure. By using hydro-cooled rigs as digital load balancers, Canaan’s project highlights the expanding role of Bitcoin mining in energy infrastructure. This alignment with Japan’s regulatory reforms and sustainable initiatives could attract more institutional investment and broaden market participation. In the short term, the announcement may boost mining stock sentiment and mining equipment demand. Long term, demonstrating Bitcoin’s utility in grid stabilization supports its narrative as an energy asset, strengthening its adoption and price support.