Brazil could become a new target destination for cryptomining companies.

A report by Reuters details how multiple companies involved in Bitcoin and cryptocurrency mining are eyeing Brazil as their next base of operations, thanks to the excess of cheap, clean energy they can find there.

There are reportedly six ongoing negotiations between various mining firms and electricity suppliers in Brazil, including one that could result in the construction of a 400MW mining site.

Certain areas in Brazil are viewed as ripe targets for cryptomining companies, which seek to take advantage of the fact that the growth of the country's solar and wind power facilities has outpaced upgrades to the nation's grid infrastructure.

This over-supply problem has reportedly cost Brazilian energy companies as much as $1 billion in the past two years.

Brazilian energy firm Renova Energy says it is making its first foray into Bitcoin mining with a $200 million investment in a 100MW mining farm in Bahia, a state in Northern Brazil. The campus will reportedly consist of six data centers, all of which draw power from a nearby wind farm.

"We aim to expand the company and enter new markets," Renova CEO Sergio Brasil said. "We realized that by providing all the infrastructure (for crypto mining), we were one step ahead of our competitors,” he added.

The stablecoin provider Tether (USDT) is also planning a Bitcoin mining site in the area, and intends to use its recent acquisition of agricultural firm Adecoagro to tap the renewable energy left over from Adecoagro’s sugar-cane mills.

Because transmission infrastructure hasn’t been constructed as fast as wind and solar developments have been put in place, some energy plants now waste as much as 70 percent of their energy.

Mining sites can scale operations up or down based on how much energy is available at the time, providing a flexible consumer base for excess energy - without putting a strain on the electricity grid during peak periods.

While companies have thus far been hesitant to share details, firms including Bitmain, Enegix, and the Paraguay-based Pengui Group are also reportedly negotiating potential contracts in Brazil.