Norway Considers Temporary Ban on Crypto Mining to Free Up Power

The Norwegian government has announced a potential temporary ban on cryptocurrency mining operations starting this autumn. This move is aimed at freeing up power, network capacity, and area for other purposes through restrictions enforced under the Planning and Building Act. The Ministry of Local Government and Regional Development will conduct an investigation that could halt mining data centers. Officials have expressed uncertainty about the future impact of crypto mining on Norway's energy infrastructure, prompting the potential ban.

Norway is currently facing rising electricity costs due to ongoing energy pressures from Russia's war with Ukraine. Local residents have previously petitioned for the shutdown of mining operations due to noise concerns. The government's new data center registration requirements will provide better information about cryptocurrency mining facilities and their resource consumption.

Norway is not alone in considering restrictions on cryptocurrency mining. Several countries have already implemented bans or restrictions to protect their electrical grids and energy security. These countries include Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, and Bangladesh. Angola passed legislation in April 2024 criminalizing crypto mining for similar reasons. Russia has implemented mining bans in 10 regions through 2031 to prevent blackouts and reduce energy consumption. China's 2021 blanket ban drove mining operations to other regions, including US states like Texas. Several Canadian provinces have also blocked mining expansion due to electricity supply strains. New Brunswick issued a moratorium in 2023, while British Columbia's utility announced restrictions in 2022. Iceland's national power company began declining new mining requests in December 2021 due to energy shortages. Sweden eliminated tax incentives for mining operations in July 2023, effectively ending the industry. Kosovo outlawed crypto mining in 2022 during an energy crisis.

Bitcoin mining consumes a significant amount of energy, approximately 173.42 terawatt hours annually. This places Bitcoin's energy consumption equivalent to the 27th largest country globally, ahead of Pakistan's 230 million population. The carbon footprint equals burning 84 billion pounds of coal or operating 190 natural gas plants. Coal provides 45% of electricity used for Bitcoin mining globally, while renewables contribute only 7% combined. Mining operations often concentrate in regions with cheap electricity. Norway and Sweden rank among top contributors to Bitcoin's environmental footprint despite their renewable energy resources. The UN study shows 67% of mining electricity comes from fossil sources, creating substantial carbon emissions.

Research suggests that mining bans can backfire by pushing operations to fossil fuel-dependent regions. Kazakhstan mining bans would reduce global emissions by 7.63%, while Paraguay bans would increase emissions by 4.32%. Bans in America and Europe typically worsen environmental impacts.

Despite regulatory pressures, Bitcoin mining remains profitable. Bitcoin's price at $102,951 as of May 2025 helped offset the 2024 halving event that reduced block rewards to 3.125 BTC. Mining hardware costs decreased substantially, with current prices around $15-16 per terahash compared to $80 per terahash in 2022. Mining companies increasingly pursue hybrid models, allocating computing power to AI workloads alongside Bitcoin operations. Firms like HIVE Digital Technologies, Hut 8, Core Scientific, and Bit Digital secured AI contracts to stabilize cash flows. This diversification reduces dependence on Bitcoin price movements.

Norwegian companies continue their involvement in Bitcoin despite government restrictions. Aker ASA holds 754 BTC valued over $80 million, making it Norway's largest corporate Bitcoin holder. K33 acquired 25 BTC this year with plans to reach 1,000 BTC holdings.

Mining profitability depends heavily on energy costs and hardware efficiency. Mining one Bitcoin costs $18,000-$25,000 in 2025, varying by electricity rates and equipment access. Miners in low-cost energy regions maintain profitability when Bitcoin prices remain elevated. The industry faces increasing regulatory scrutiny globally. Environmental concerns drive policy changes as governments balance energy needs with economic considerations. The crypto industry pledged to achieve 100% renewable blockchain power by 2025 and net-zero emissions by 2030. However, progress remains limited as fossil fuels continue dominating mining energy sources.

Norway's investigation will use new data center registration rules to monitor energy usage and assess resource strain. The autumn 2025 timeline provides time for a comprehensive evaluation of mining impacts on national energy infrastructure.