AetherHash Mining Corp's operations include its network of 15 high-density data centres globally, dedicated to validating proof-of-work blockchain transactions. These facility clusters consume massive amounts of grid electricity, often sourced from fossil-fuel heavy regional grids, generating significant external carbon emissions and strain on local energy infrastructure.
In response to rising carbon taxes and community pressure, AetherHash has announced a transition strategy. They plan to co-locate their new data centres with dedicated utility-scale solar arrays and deploy liquid-cooling systems that capture and redirect waste heat directly into municipal district heating networks. In 2024, they were recognised as a pioneer in decarbonising computational infrastructure.
Examine the likely impact of AetherHash Mining Corp's transition strategy 'to co-locate with solar arrays and redirect waste heat' (Extract B) on the social optimum position. Use an appropriate externalities diagram in your answer.
