How Bitcoin Mining Waste Heat Is Being Used to Warm Canadian Greenhouses

Key takeaways

• Bitcoin mining produces large amounts of heat that are typically treated as waste. In cold regions, this thermal output is now being tested as a useful resource.

• A pilot project in Manitoba is integrating Bitcoin mining with greenhouse farming, reusing server heat as a supplemental source of agricultural heating.

• Liquid-cooled mining systems are generally associated with higher and more stable heat capture, making recovered thermal energy suitable for industrial heating applications.

• Reusing mining heat may lower operating costs for both miners and greenhouse operators by improving energy efficiency and reducing dependence on fossil fuels.

Bitcoin (BTC) mining faces criticism for consuming large amounts of electricity and generating significant heat that is typically treated as waste and must be cooled or removed. In colder regions, that heat is now being tested as a potentially useful byproduct.

In the province of Manitoba, Canada, a pilot project is examining whether heat produced by Bitcoin mining can be reused to support greenhouse farming. Integrating Bitcoin mining with greenhouse agriculture offers a practical way to repurpose heat generated during the mining process.

This guide discusses the Manitoba pilot project and explores how thermal waste from digital infrastructure can be reused. It also outlines how improving thermal efficiency may help reduce Bitcoin mining operating costs while discussing emerging mining-integrated heating models and their limitations.

Repurposing thermal waste from digital infrastructure

Bitcoin mining relies on specialized equipment that performs a large volume of calculations to secure the network and confirm transactions. This continuous processing generates substantial heat, similar to data centers but often at a higher power density.

Traditionally, miners use fans or cooling systems to remove this heat. In colder climates, this creates a paradox. Electricity is used to generate heat, and then additional electricity is consumed to dissipate it. Even in regions where nearby buildings require heating for much of the year, simply discarding the heat can appear inefficient.

This has led some mining companies to ask a simple question: Why not reuse the heat instead of venting it? This line of thinking underpins efforts to integrate Bitcoin mining with greenhouse agriculture.

Did you know? In parts of Finland and Sweden, waste heat from conventional data centers is used to warm entire residential districts through municipal heating grids.

The Manitoba pilot: Canaan and Bitforest collaborate

The pilot project in Manitoba brings together hardware maker and mining company Canaan with Bitforest Investment, a firm focused on sustainable infrastructure and agriculture.

The project operates at about 3 megawatts (MW) of mining capacity and is planned as a 24-month proof of concept. Its goal is not only to demonstrate technical feasibility but also to collect data that can help determine whether the model can scale to larger agricultural or industrial applications.

Instead of typical air-cooled mining machines, the system uses liquid-cooled servers from Canaan’s Avalon series. Around 360 mining units are installed and connected to a closed-loop heat exchange system that transfers heat into the greenhouse’s water-based heating infrastructure.

Rather than fully replacing existing heating systems, the mining heat is used to preheat incoming water. This can reduce the energy required from conventional boilers, particularly during colder months.

The synergy between Bitcoin mining and greenhouse agriculture

Greenhouses require steady, continuous heating, particularly in northern regions where winter temperatures can be extremely low. Tomatoes and other year-round crops are sensitive to temperature fluctuations, making reliable heat essential for consistent production.

From an engineering perspective, this constant energy demand aligns well with Bitcoin mining, which produces predictable and continuous heat. When captured efficiently, a significant portion of the electricity consumed by mining equipment can be converted into usable thermal energy.

Liquid cooling plays a key role in this process. Compared with air cooling, liquid-cooled systems capture heat at higher and more stable temperatures, making them suitable for industrial heating applications rather than simple space heating.

Did you know? Some companies sell Bitcoin mining rigs designed to function as household space heaters, allowing owners to heat rooms while mining cryptocurrency.

Reducing operational costs through thermal efficiency

Heating represents a significant operating cost for greenhouse operators. Any reduction in fossil fuel use has the potential to improve profitability while also lowering carbon emissions.

For miners, reusing heat can improve overall energy efficiency. It may help make marginal sites more viable, especially in regions where heating demand is consistent and electricity prices remain reasonable.

This is why heat recovery is attracting interest beyond agriculture, including applications in home heating, industrial drying and district heating networks.

While heat reuse does not eliminate mining’s energy footprint, it can significantly improve how efficiently that energy is used.

New operational models in digital mining

The Manitoba initiative is not an isolated case. Across the sector, operators are testing different ways to reduce costs and improve community relations as mining complexity and industry competition have increased in recent years.

Some mining companies have relocated operations closer to renewable energy sources such as hydroelectric dams, wind farms and solar plants. Others are developing modular facilities designed to make use of excess energy production.

Heat reuse adds another layer to this strategy, positioning miners as partners in local infrastructure rather than standalone industrial sites. This approach also mirrors trends in modern data center design, where waste-heat recovery is increasingly incorporated into urban planning, particularly in colder European cities.

Establishing a replicable model for cold-climate heat recovery

Canaan’s primary goal is not just to heat a single greenhouse but to develop a model that can be applied in other cold-climate regions.

It involves gathering operational data on:

• Heat capture efficiency

• Reliability of liquid-cooled mining systems

• Integration with existing greenhouse heating equipment

• Maintenance and operational complexity

• Overall cost savings compared with conventional heating.

If the economics prove sustainable over time, similar systems could be deployed in northern US states, parts of Europe and other agricultural regions that rely heavily on heated greenhouses.

Did you know? Several French municipalities have piloted public swimming pools heated partly by server waste heat from nearby facilities.

Limitations of mining-integrated heating

Despite its potential, waste-heat reuse is not a solution for every situation:

• The upfront cost of liquid-cooled systems and heat-exchange equipment is higher than that of standard mining setups. Without steady, long-term heating demand, these costs may not be justified.

• Not every location has suitable nearby partners that can use the heat efficiently. Because heat cannot be transported over long distances without significant losses, close proximity between mining facilities and heat users is required.

• Farming operations depend on reliable uptime. Any interruption in mining could affect heating consistency, so backup systems must remain in place.

• Heat reuse does not address broader questions about energy sources. The environmental benefits are greatest when mining operations rely on low-carbon electricity.

Why this matters for Bitcoin’s long-term story

Bitcoin’s energy debate has increasingly shifted from total consumption figures to how and where that energy is used.

Projects such as the Manitoba greenhouse pilot suggest that mining infrastructure can be designed to align with local energy and heating needs, rather than compete with them.

If these models demonstrate commercial viability, they could help position mining as part of regional energy systems. Bitcoin mining would no longer appear as an isolated digital sector but as an infrastructure layer that supports other economic activities.

Whether integrated heating becomes mainstream will depend on engineering performance, cost trends and long-term reliability.