Crypto mining firm Canaan Inc. has announced that it has been selected to supply Bitcoin mining equipment for a district heating network in the Nordic region.

The Singapore-based crypto mining hardware company said an unnamed Nordic heating provider will use its Avalon A1566HA hydro-cooled mining units to feed hot water into an existing district heating system.

The deployment will have a combined capacity of around 8MW. Canaan said around 2MW of heating capacity, comprising 228 A1566HA units, is already operating in the region and supplying hot water to local residents.

Following the performance of the initial phase, the customer placed a follow-on order in March 2026 for a further 692 units, adding another 6MW of capacity.

Canaan said the equipment can produce hot water at around 80°C (176°F), allowing the heat generated by the mining machines to be used directly in district heating infrastructure. The company said the full 8MW project is expected to provide heating for around 2,800 homes.

The company did not disclose the name of the customer, the exact location of the deployment, financial terms, or when the additional 6MW of equipment will be fully operational.

“Heat reuse is no longer an ancillary byproduct of compute,” said Nangeng Zhang, chairman and CEO of Canaan.

Zhang said the company had developed the system with the requirements of district heating infrastructure in mind, adding that the project represented validation of Canaan’s work in energy-integrated computing systems.

In Bitcoin mining, ASIC machines perform hashing calculations and generate heat as a byproduct. Liquid- or hydro-cooled systems can transfer that heat into water loops for reuse in buildings, greenhouses, or industrial processes.

Canaan said its A1566HA units are deployed in parallel and support dynamic overclocking and underclocking, allowing the heating nodes to adjust output according to demand. The company said this could provide more flexibility than single-source heating systems such as boilers.

The project follows a number of recent efforts to reuse heat from crypto mining and data center infrastructure in colder climates.

Earlier this year, Canaan announced a two-year, 3MW pilot project in Manitoba, Canada, in partnership with Bitforest Investment. The deployment used 360 Avalon liquid-cooled computing servers connected to a commercial greenhouse’s boiler loop, with the recovered heat used to support year-round tomato cultivation.