A major agricultural company in Latin America is set to combine renewable energy and digital technology through a new project that will use sugarcane-based energy to power a bitcoin mining operation in Brazil.
Adecoagro, which manages more than 500,000 hectares of farmland across Brazil, Argentina and other countries in the region, has announced plans to launch a bitcoin mining data center fueled by energy generated from sugarcane, Bitcoin News reported.
The project was presented by Matheus Lechuga, project manager at Adecoagro, as part of the company's "Roots of the Future" initiative, which outlines future operations in the Brazilian state of Mato Grosso do Sul.
According to Lechuga, the project is designed to test and expand the company's technological capabilities while making use of its existing agricultural infrastructure. The initial focus will be on bitcoin mining powered entirely by clean energy derived from sugarcane.
The facility is expected to generate 10 megawatts of electricity, enough to operate approximately 1,280 bitcoin mining machines. The company is targeting July 1 for the launch of the operation.
Lechuga said the primary objective of the project is to maximize energy efficiency while exploring new ways to use renewable resources generated through agricultural activities.
The energy source for the project will be bagasse, a fibrous by-product left after sugarcane is processed. Bagasse is widely used as a biofuel and can generate electricity through combustion. Because sugarcane absorbs carbon dioxide while growing, the emissions produced when bagasse is burned are largely offset by the crop's carbon uptake, making the process close to carbon neutral.
The initiative also marks a significant step in the growing partnership between Adecoagro and Tether, the digital asset company. The two firms signed a memorandum of understanding last year to explore opportunities related to bitcoin mining.
Tether later strengthened its involvement in the agricultural company by acquiring a controlling stake in Adecoagro through a $600 million all-cash offer, becoming the company's majority shareholder.
The project reflects a broader trend within the bitcoin mining industry, where operators are increasingly seeking lower-cost and cleaner energy sources to improve profitability while reducing environmental impact. By combining renewable energy from sugarcane with data center operations, Adecoagro aims to create a new model that links agricultural production with digital infrastructure.