600MW Power Boost Gives Ethiopian Bitcoin Mining Industry Momentum
Ethiopia is rapidly becoming a powerhouse for Bitcoin mining as the sector currently consumes 600MW of electricity. More is still anticipated within the next few months, a factor that will even further solidify the confidence of investors in the crypto mining business.
Power Consumption and Expansion Plans
According to Ethan Vera, co-founder and COO of Luxor Mining, local Bitcoin miners already tap a large portion of Ethiopia’s generation capacity of about 5,200 MW from primarily hydropower. As more renewable energy projects come online, the country is set to add hundreds of megawatts of capacity before the end of the year to feed its growing mining sector.
Pleasant Mining Environment
That creates a peculiar environment for Bitcoin miners, especially for those using mid-generation mining machines such as Bitmain’s S19J Pro and Canaan’s A1346 models, at an efficiently low cost in terms of energy, with relatively cheap electricity costs on their side in the country. The cooler climate in the country reduces the need for an intensive cooling system, hence further enhancing mining efficiency.
Government-Backed Digital Infrastructure Growth
Support for Bitcoin mining is part of a broader push by Ethiopia to develop its digital infrastructure. Early this year, Ethiopian Investment Holdings signed a $250 million deal with Hong Kong-based West Data Group to advance high-performance computing in the country, a segment including cryptocurrency mining. The deal underlined Ethiopia’s commitment to becoming one of the leading regional players in technology and digital transformation.
Strategic Advantages amid Global Shifts
Since the crypto mining ban in China in 2021, many have migrated to areas with cheaper energy costs. In this respect, cheap electricity added to government-backed support has shaped Ethiopia as an attractive destination in their search for new opportunities.
While the industry has been on the rise, it should be underlined that half of Ethiopia’s 120 million citizens lack access to electricity, so such development comes with the need for a balance between industrial expansion and public access to power.
The increasing importance of Ethiopia in the world Bitcoin mining map may point toward a broad future perspective with continuous investment attraction and development of infrastructure.
