Canaan Deploys Hydro-Cooled Avalon® A1566HA Servers at Major Japanese Utility
4.5-MW project leverages Bitcoin mining for real-time grid balancing and energy efficiency amid rising residential and data-center power demand
Hydro-cooled Avalon® A1566HA servers deployed at major Japanese utility
Project underscores Canaan's ability to support grid efficiency amid rising residential and data-center power demand
Canaan Inc., an innovator in crypto mining, announced a 4.5-megawatt sales contract with an electrical engineering solutions provider to deploy Avalon A1566HA-488T hydro-cooled mining servers for real-time grid balancing and energy-efficiency optimization in Japan. The facility is led by a major regional utility.
The Avalon servers will operate continuously to help stabilize regional power-grid load through controlled overclocking and underclocking, beginning by the end of 2025. Powered by Canaan's self-developed smart control chip, the system dynamically adjusts frequency, voltage, and hashrate through advanced feedback algorithms, allowing Avalon systems to respond to grid fluctuations, maintain optimal efficiency, and enhance grid reliability.
The project highlights Canaan's growing role at the intersection of AI infrastructure, renewable energy, and blockchain computing, showcasing its hydro-cooled and low-carbon architecture, which enables adaptive, sustainable data processing. The initiative also aligns with Japan's broader digital-asset reforms, including proposed measures to reclassify crypto assets as "financial products" under the Financial Instruments and Exchange Act (FIEA), introduce a flat 20% tax on crypto gains, expand bank participation in digital-asset services, and authorize regulated financial institutions to hold crypto assets directly.
"With our Avalon hydro-cooled servers equipped with a smart control chip and Bitcoin mining technology, utilities can leverage Bitcoinmining as a digital load balancer, improving both energy sustainability and grid efficiency," said Nangeng Zhang, chairman and CEO of Canaan. "As residential, AI compute, and high-density data centers place increasing pressure on national power systems, we are seeing rising demand for our energy-efficient, grid-interactive solutions across Asia, North America, and Europe. This project builds on a similar initiative we supported in the Netherlands last year, and we expect to expand such deployments with global energy and data-center partners in 2026."
