20.06.2025 21:47

Norway is temporarily halting the establishment of new cryptocurrency mining data centers to address growing energy consumption concerns. This moratorium, effective August 2024, aims to curtail the substantial energy demands associated with these operations. The decision reflects the Norwegian government's proactive stance on managing its energy resources.

The ban, announced on June 20th, forms part of a broader regulatory effort targeting energy-intensive crypto mining. Digitalization and Public Administration Minister Karianne Tung emphasized the government's clear intention to significantly restrict cryptocurrency mining within Norway. This initiative follows an April bill demanding registration and ownership transparency from all data centers, including those involved in cryptocurrency mining.

Norway's abundant and inexpensive hydroelectric power, particularly in the northern regions, has inadvertently attracted significant cryptocurrency mining operations. This has resulted in Norway accounting for approximately 2% of the global Bitcoin mining hash rate, according to internet sources, placing considerable strain on the nation's energy grid. However, the government contends that the economic benefits and job creation from these operations are insufficient to justify their high energy consumption.

The Norwegian government's priority is to allocate its considerable hydropower resources—a sustainable energy source stemming from its geographical advantages and supplementing its North Sea oil reserves—to other sectors deemed more crucial for economic growth and societal benefit. The temporary ban represents a strategic decision to ensure the responsible and efficient use of Norway's energy infrastructure.