Paper short abstract:

Through an ethnographic approach about cryptocurrency farms in Iceland, this presentation discusses the claims for sustainability of the IT industry amidst energy controversies. Unpacking power dynamics and techno-economic perspectives, we discuss future perspectives of digital capitalism.

Paper long abstract:

Through an ethnographic approach of cryptocurrency farms in Iceland, this presentation is going to critically discuss the claims for sustainable development of the IT industry and its forms of digital extractions and materialities. The surge in cryptocurrency, particularly its influence on energy issues related to IT infrastructures, has garnered attention from researchers examining the intersection of IT, digital colonialism, and climate change (Turby et al., 2022; Howson, Vries, 2021; Jingming et al., 2019). According to the International Energy Agency, in 2021, cryptocurrencies consumed around 140TWh of electricity globally, surpassing Argentina's entire energy consumption for the year with a population of 45 million (IEA, 2022). In this context, Iceland emerges as a promising site for investigation due to the rapid growth of crypto farms fueled by abundant, inexpensive renewable energy and favorable climate conditions for data center refrigeration. Additionally, Iceland strategically positions itself as a "hotspot" for data centers, enticing expansion through low corporate taxes and financial incentives (Sovacool et al., 2022). However, in the wake of recent energy shortages, Landsvirkjun, Iceland's national power company, decided to cease powering new crypto farms and imposed constraints on existing ones. This development sparked a sociotechnical controversy, with arguments revolving around energy security, consumption constraints on one hand, and on the other, the potential sustainability of blockchain technology and cryptocurrencies in the country. Drawing from this ethnographic case, how power relations operate in these infrastructures, and how techno-economic practices are shaping future perspectives on digital economy in the data-driven capitalism?