Norway Introduces Temporary Ban on New Crypto Mining Data Centers
Norway is taking steps to control the energy demands of crypto mining. The government has announced a temporary ban on establishing new crypto mining data centers. This decision is effective as of August and aims to address the high energy consumption caused by these activities.
On June 20, Minister for Digitalization and Public Management Karianne Tung revealed this initiative. According to her, the Labor Party government aims to substantially limit crypto mining in the country. “We want to close the door on projects that aren’t beneficial,” Tung stated.
In April, Norway introduced a bill to regulate data centers, requiring them to register and disclose ownership details. The ban complements these efforts to manage crypto mining’s impact.
Norway’s abundant and cheap electricity has made it an attractive location for crypto miners.The country contributes 2% to the global Bitcoin mining hash rate, mainly due to its northern regions’ low energy and real estate costs. Though,the government feels these operations don’t significantly boost the local economy or create jobs.
Given its North Sea oil reserves and hydropower capacity, Norway wishes to allocate electricity to more productive sectors. While hydropower is a renewable energy source,the government wants to ensure it is used for sustainable progress.
