Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Norway is preparing to impose a temporary ban on the establishment of new cryptocurrency mining data centers that use the most power-intensive technologies.
The move is part of a broader effort to conserve electricity for other sectors of the economy, according to a statement released by the government on Friday.
The proposal is expected to take effect in autumn 2025 and would make Norway the first country in Europe to introduce targeted restrictions on crypto mining through data center regulation.
Norway to Ban New Power-Hungry Crypto Mining Centers
According to Reuters, Digitalization Minister Karianne Tung said the government is determined to clamp down on what it sees as unsustainable use of energy.
“The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible,” she said.
Energy Minister Terje Aasland echoed that position, noting the environmental challenges posed by the industry. The government considers crypto mining incompatible with its climate goals, especially due to its high electricity consumption and limited value in terms of jobs or long-term investment.
The decision builds on earlier measures. In 2022, the government proposed ending reduced electricity tax rates for data centers, which would have forced mining operations to pay standard energy costs.
Finance Minister Trygve Slagsvold Vedum backed the measure, emphasizing the need to prioritize electricity for broader societal benefit.
“Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community,” Tung added.
Norway’s abundance of cheap, renewable electricity, mainly from hydropower, has made it an attractive destination for crypto mining firms. In 2021, hydropower accounted for 92% of the country’s electricity, with wind power contributing another 7%.
According to data from Cambridge University’s Bitcoin Mining Map in early 2022, Norwegian miners made up about 0.74% of Bitcoin’s global hash rate. Other estimates have put the figure closer to 2%.
The government is also moving ahead with legislation introduced in April that seeks to regulate data centers more broadly. Operators would be required to register with local authorities and disclose ownership and the nature of services provided.
This push for regulation reflects growing concern in Norway about how electricity is used, particularly as other industries face rising costs and pressure to meet sustainability goals.
While the crypto sector has benefited from the country’s low-cost energy, officials now question its long-term benefits.
As the global conversation around crypto mining and energy usage continues, Norway’s latest move marks a shift toward stricter control over how digital infrastructure is allowed to grow.
Norwegian Town Faces Higher Power Bills After Bitcoin Mining Ban—A Pricey Victory?
As Norway intensifies efforts to curb energy consumption with a nationwide ban on new crypto mining data centers, the local fallout is already being felt.
In September 2024, a Bitcoin mining center in Hadsel municipality shut down following years of noise complaints and political pressure. While the closure ended a long-running dispute, it came with an unexpected consequence: a 20% spike in residents’ electricity bills.
The mining plant consumed about 80 GWh annually, equivalent to the energy use of 3,200 households, according to the Norwegian Broadcasting Corporation (NRK). Its constant fan noise had caused serious disturbance, with a 2022 report describing locals as “distraught.”
Despite this, the operating company maintained it had stayed within national noise limits.
Hadsel Mayor Kjell-Børge Freiberg celebrated the shutdown, calling the plant “a nuisance for the past three years.”
But the loss of the facility, which contributed 20% of local grid operator Noranett’s income, has left residents footing the difference.
Noranett’s network manager, Robin Jakobsen, said households could now pay NOK 2,500–3,000 more annually (around $235–$280).
As the municipality seeks new industrial partners to absorb the surplus energy, the incident illustrates the complex trade-offs in regulating crypto mining. While the goal is to reduce environmental strain, the economic ripple effects are unavoidable.
Norway’s regulatory stance echoes broader international trends. Russia, for instance, has also imposed a mining ban across ten regions, set to begin in 2025, citing energy conservation.
As governments tighten crypto mining policies, the tension between environmental responsibility and economic impact becomes increasingly apparent.
