Norway Considers Temporary Ban on Crypto Mining to Save Electricity

Norway is considering a temporary ban on cryptocurrency mining to address concerns over electricity consumption and noise pollution. The government aims to protect the country's electricity supply, network capacity, and land availability, which are under increasing strain due to rising energy demand. The proposed ban is part of a broader effort to promote more responsible energy usage and ensure that Norway's energy resources are used effectively.

Local residents have long complained about the noise generated by mining equipment operating 24 hours a day and the significant amount of electricity consumed by these operations. Despite these issues, cryptocurrency mining does not contribute much to local economies, creating few jobs and generating minimal revenue. This has put pressure on authorities to take action.

Karianne Tung, the Minister of Digitalization and Public Administration, emphasized that cryptocurrency mining does not generate many jobs or provide significant revenue to communities. Instead, the electricity used for mining could be directed towards industries or socially useful data centers that support digitalization and innovation. The government plans to evaluate a temporary prohibition on new crypto mining data centers through the Planning and Building Act, which governs national growth and land use in Norway. This measure will focus on the impact of mining activities on the country and the amount of electricity they consume.

The proposed ban will specifically target high-energy crypto mining facilities and not other types of data centers. Authorities are keen to ensure that important cyber structures, such as artificial intelligence and service centers, are not impacted. This approach aims to control energy consumption without hindering the advancement of beneficial technologies.

Norway has long been an attractive destination for crypto miners due to its low electricity prices, access to renewable energy, and cool climate, which helps reduce cooling costs for mining equipment. However, this has also led to concerns about the exploitation of cheap energy with little benefit to local communities. The government's new regulations require any new data centers in Norway to register their activities by July 1. This move is intended to help the government understand the extent of mining operations and ensure that energy resources are protected and used for projects that benefit society and the economy.

The decision to ban crypto mining is part of a broader effort to address the increasing demand for electricity in Norway. Terje Aasland, Minister of Energy, noted that a prohibition on high-energy crypto mining would allow the freed power and acreages to be used for more employment-generating activities, thereby reducing emissions. The final decision on the ban will be made once the investigation is completed at the end of 2025.