Norway Bans New Crypto Mining Data Centres to Conserve Electricity

Coin WorldSaturday, Jun 21, 2025 6:22 pm ET
2min read

Norway has implemented a temporary ban on new data centres specifically designed for crypto mining. This move is aimed at conserving electricity for more productive industries that contribute to the country's economy and employ more Norwegians. The ban is part of a broader initiative to control and limit undesirable projects, with a particular focus on crypto mining, which is known for its high energy consumption.

The Norwegian government, led by Energy Minister Terje Aasland, cited the need to meet the nation’s climate targets as the primary reason for the ban. Aasland emphasized that crypto mining, which relies on substantial electricity, is incompatible with the government’s long-term climate goals. The technology does not contribute meaningfully to the nation’s investments and uses excess electricity that could be better utilized by other industries.

Norway has a history of taking measures against crypto mining. In 2022, the government proposed ending tax incentives for the industry, forcing crypto miners to pay the standard rate for electricity. Finance Minister Trygve Slagsvold explained that the move was about prioritizing energy to benefit the entire community, as crypto mining does little to help local communities despite its high energy consumption. Norway’s grid is powered by 92% hydropower and 7% wind energy, making it a resourceful economy in terms of climate targets. However, the government is concerned about the long-term viability of crypto mining.

Residents of Hadsel, a Norwegian province, petitioned the government to shut down a local Bitcoin mine in October 2024. However, their electricity prices increased due to energy companies accounting for lost revenue from the closure of the mine. The Bitcoin mining operations produced 20% of the energy company’s revenue, and when the mine was shut down, the energy company passed on its lost revenue to consumers. The mayor of Hadsel, Kjell-Borge Freiberg, noted that residents had been complaining about the noise from the Bitcoin mining data centre. It is estimated that residents of Hadsel will pay an extra $235 to $280 on their annual electricity bill due to the closure of the mine.

Russia has also implemented a mining ban in ten regions, including those with a vulnerable energy grid. Many countries, including Norway, are taking a critical stance towards crypto mining, either to meet climate targets or to restrict the spread of anonymous currencies. Energy-rich countries like Norway are budgeting their energy use to prioritize their grid for more productive industries. Miners in Norway now have the options to remain in the country, invest in low-power consumables, relocate to another country, or switch to proof-of-stake methods to comply with the government’s regulations and continue to make a profit.

In 2024, Norway first attempted to scrutinize the crypto mining industry by announcing a new set of regulations. These regulations required all data centres engaged in crypto mining to register their activities. The Norwegian government clarified that these regulations were not intended to punish the crypto industry but were designed to better align the industry with national climate change targets and sustainability beliefs. The government aims to control and limit undesirable projects, with a particular focus on crypto mining, to conserve electricity for more productive industries that contribute to the country's economy and employ more Norwegians.