Russia is currently offering favorable policies for data centers involved in artificial intelligence (AI) development, including reduced electricity prices, state funding support, and tax exemptions. The new legislation prioritizes the use of computing power for AI applications, which may limit resources available for cryptocurrency mining. This shift is becoming increasingly evident as more miners turn to AI in pursuit of more predictable and higher profits.
The Russian Ministry of Digital Development, Communications and Mass Media has released a draft law aimed at regulating domestic artificial intelligence. This law also seeks to mitigate risks associated with new technologies by introducing specific requirements that will depend on the impact of AI systems on human life and society.
According to reports from the International News Agency and the business news portal RBC, this new regulation is expected to take effect in September next year, as Russia hopes to advance in artificial intelligence. The bill defines artificial intelligence as “a set of technologies that can simulate human cognitive functions and produce results comparable to or better than human outcomes.”
The legal framework establishes the rights and obligations of all parties involved in the development and use of this solution and service, while protecting Russian citizens from covert manipulation and discriminatory algorithms, and preventing illegal content and unauthorized use, the digital ministry stated. “All audiovisual materials created using artificial intelligence must contain special warning labels,” the announcement stated, adding that social networks will be obligated to check for their presence and label or remove relevant content.
The authors of the draft particularly focus on ensuring that the necessary computing infrastructure is available to support Russia's AI development. The Moscow government will approve a list of data processing centers (DPCs) designated for AI demand and provide certain incentives for these centers. Operators of these facilities will be able to sign long-term power purchase agreements at capped electricity prices lower than those of other industrial users, while also receiving priority connection to the power distribution network and exemption from connection fees.
Companies operating AI data centers will receive funding support from the national budget and various tax exemptions. These privileges give the AI sector a competitive edge in the race for the same computing power against the cryptocurrency mining industry. As more mining enterprises globally shift towards AI application data processing, Russia's efforts to promote AI development become particularly significant. This transition is often driven by expectations of higher returns on hardware investments.