Cloud computing infrastructure: Phoenix Group Turns to HPC with 18MW France Facility

UAE-based Phoenix Group is pivoting from crypto mining to HPC with an 18MW facility in France. The Silicon Review reports on the partnership with DC Max and the expansion into cloud computing infrastructure.

UAE-based cryptocurrency miner Phoenix Group is pivoting to high-performance computing with plans to develop an 18 megawatt HPC facility in Lyon, France, marking a significant strategic shift as the industry diversifies beyond digital asset mining.

The company has partnered with DC Max, a French data centre operator owned by Freo Group, to develop the facility. The Lyon project represents Phoenix Group's first major expansion into the European HPC market and its most substantial move away from pure cryptocurrency mining operations.

The facility will be designed to support HPC workloads including artificial intelligence training, scientific simulations, and cloud-based enterprise applications. Phoenix Group has been progressively diversifying its infrastructure portfolio, with cryptocurrency mining now accounting for approximately 40 percent of its total capacity.

Phoenix Group's pivot comes amid industry-wide pressures on crypto mining margins. The Bitcoin halving in 2024 reduced mining rewards, while fluctuating energy prices and increased competition have forced miners to seek alternative revenue streams. Converting existing infrastructure to support HPC and AI workloads offers a path to more stable, contract-based revenue.

The Lyon facility will be designed to Tier III standards, featuring redundant power and cooling systems to ensure high availability for enterprise clients. DC Max will contribute its local operational expertise, while Phoenix Group will bring its experience in managing large-scale, energy-intensive computing infrastructure.

France has emerged as a strategic location for HPC development due to its abundant nuclear energy, which provides reliable, low-carbon electricity at competitive rates. The French government has actively courted data centre investment as part of its broader digital sovereignty strategy.

The announcement follows similar moves by other cryptocurrency miners, including Hut 8 and Core Scientific, which have repurposed existing facilities for HPC and AI workloads. Industry analysts project that up to 20 percent of cryptocurrency mining capacity could be converted to HPC applications by 2028.

As UAE-based Phoenix Group pivots from crypto mining to high-performance computing with an 18MW facility in France, The Silicon Review examines how declining mining margins are driving operators toward more stable, contract-based cloud computing infrastructure markets in Europe.

Q: where is Phoenix Group's new HPC facility located?
A: Phoenix Group is developing an 18 megawatt high-performance computing facility in Lyon, France, in partnership with French data centre operator DC Max, owned by Freo Group.

Q: Why is Phoenix Group pivoting from cryptocurrency mining to HPC?
A: Phoenix Group is pivoting due to industry-wide pressures on crypto mining margins following the Bitcoin halving in 2024, which reduced mining rewards. HPC offers more stable, contract-based revenue streams.

Q: What types of workloads will the Lyon HPC facility support?
A: The facility will support high-performance computing workloads including artificial intelligence training, scientific simulations, and cloud-based enterprise applications.

Q: What percentage of Phoenix Group's capacity is currently dedicated to cryptocurrency mining?
A: Cryptocurrency mining now accounts for approximately 40 percent of Phoenix Group's total capacity as the company continues to diversify its infrastructure portfolio.

Q: Why did Phoenix Group choose France for its first European HPC facility?
A: France offers abundant nuclear energy, providing reliable, low-carbon electricity at competitive rates. The French government has actively courted data centre investment as part of its digital sovereignty strategy.

Q: What other cryptocurrency miners have made similar moves into HPC?
A: Hut 8 and Core Scientific have also repurposed existing facilities for HPC and AI workloads. Industry analysts project up to 20 percent of cryptocurrency mining capacity could be converted to HPC applications by 2028.