Key Takeaways
- Norway plans to temporarily ban new power-intensive crypto mining data centers to preserve electricity for other industries.
- Some miners in Norway are adopting sustainable solutions like heat recycling, despite increased restrictions.
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The Norwegian government said Friday that it intends to temporarily block the establishment of new data centers that engage in power-heavy crypto mining. The plan was first reported by Reuters.
According to Karianne Tung, Minister for Digitalization and Public Administration, crypto mining is “very power-intensive” and offers little return in jobs or local economic benefits, and the government wants to prioritize electricity for other sectors.
The proposed restrictions could take effect in autumn 2025, targeting facilities that use the most energy-intensive mining technologies.
Norway has been a popular destination for crypto miners due to access to abundant hydropower. According to data from Webopedia, the country stands in the global top ten for crypto mining activity.
This popularity, however, has triggered public concern over energy use, especially amid growing electricity demand and green energy transition goals.
Bitcoin mining operations in Norway have also come under increased public scrutiny over noise pollution. In late 2024, residents in the Hadsel municipality successfully pushed to shut down a local mining facility due to excessive noise.
However, the closure drove up electricity bills for residents, as the facility accounted for roughly 20% of the local power company’s revenue.
High energy consumption is one of the biggest concerns when it comes to crypto mining.
Russia has imposed bans on crypto mining in 10 regions, including the North Caucasus republics and the occupied territories of Ukraine, effective from January 1, 2025, lasting until March 15, 2031.
Seasonal restrictions also apply in some Siberian regions during peak energy consumption periods to prevent power shortages.
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