Canaan Launches 3.0 MW Heat-Reuse Pilot With Bitforest in Canada
Proof-of-concept recycles computing heat from liquid-cooled mining systems to support greenhouse operations
Canaan Inc. an innovator in crypto mining, announced a 3.0 MW proof-of-concept (PoC) with Bitforest Investment Ltd. ("Bitforest" or the "Host") in Manitoba, Canada, to recover heat from an Avalon computing system and use the heat as a supplemental source for greenhouse operations. The pilot is part of Canaan's broader initiatives to make high-density computing operations more efficient through the use of cutting-edge semiconductor chips that create practical energy reuse across commercial and consumer applications. The project will also allow Canaan to evaluate key performance indicators for agricultural applications, such as heat recovery efficiency, system stability, and operating and maintenance intensity under real operating conditions.
Under the agreement, for an initial 24-month term, Canaan will deploy an Avalon computing system consisting of 360 units of the Avalon A1566HA-460T liquid-cooled computing servers and four liquid-cooling container modules (the "Canaan Equipment") to be operated by the Host. Delivery will follow Bitforest's notice to proceed. Heat captured from Canaan's computing system will preheat the intake water for the site's electric boilers through a closed-loop heat-exchange system, thus lowering the incremental energy required to meet target temperatures. The Host targets 95% uptime for the Canaan Equipment. Based on current assumptions, Canaan estimates that approximately 90% of the electricity consumed by the computing servers will be captured and transferred to the heating system. Actual performance metrics will be confirmed once fully operational.
Subject to actual operating conditions, the computing system is expected to achieve attractive capital efficiency. The unique system is expected to lower capital expenditure by removing the industrial cooling towers which would otherwise be needed in liquid-cooled data centers. In terms of operating expenses, Canaan also enjoys a very low all-in cost of power of US$0.035/kWh, which includes the Host's power cost and routine operation, troubleshooting, and maintenance of the Canaan Equipment. If Bitforest participates in grid demand-response or sells power back to the grid, Canaan will share in the economic benefits of such programs, making this PoC a true win-win collaboration.
"With this PoC, we are not just deploying computing equipment for one project—we hope to build a data-driven, replicable model," said Nangeng Zhang, chairman and chief executive officer of Canaan. "This program will allow us to measure, model, and scale heat recovery for agriculture in colder climates. Liquid cooling enables us to output high-temperature hot water above 75°C, making compute heat directly usable for greenhouses. The PoC expands our broader efforts to rethink how computing infrastructure can enhance energy sustainability for households, businesses, and industrial partners."
Large greenhouse facilities often rely on fossil-fueled boilers as their primary heat source. Several regions, including Canada, have adopted carbon pricing to encourage lower-carbon heating options in greenhouses. Canaan's Avalon computing system will provide supplemental heat that ties into Bitforest's existing boiler loop. The combined setup is designed to deliver up to one million tonnes of hot water annually by recycling heat from computing servers that would otherwise be wasted, improving overall site power efficiency while reducing environment impact.
Canaan will continue expanding its energy efficiency initiatives, including industrial heat-reuse deployments, bitcoin-mining space heaters for home use, and ongoing advances in power-efficient Avalon systems built on Canaan-designed semiconductor chips.
