Key Notes
- Norway will temporarily ban the establishment of new data centres that mine cryptocurrency.
- The authorities think this operation does not generate jobs or contribute to income for the local community.
- Cambridge reports that half of Bitcoin mining is powered by low-carbon or renewable energy sources.
Norway is considering a temporary ban on Bitcoin BTC $104 287 24h volatility: 0.1% Market cap: $2.07 T Vol. 24h: $25.73 B mining operations in its region. The authorities are concerned about the massive use of electricity and its impact on the economy. According to a statement from the Nordic country’s government, the ban will take effect in the Autumn of 2025.
Norway to Put a Stop to Data Centre Establishment
Over the years, Norway, especially its northern wing, has become home to Bitcoin mining companies due to its relatively cheap electricity. This outlook is on the verge of changing with the ban that the country intends to impose very soon.
According to a Reuters report , Norway will temporarily ban establishing new data centres that mine cryptocurrency, especially those with the most power-intensive technology. The goal is to conserve electricity for other industries and even household use. Norway’s Minister for Digitalization and Public Administration, Karianne Tung, announced that the Labour Party is keen on taking on this action.
Apart from being power-intensive, the Minister thinks that Bitcoin mining does not contribute much to job creation or income for the local community. Norway’s push against cryptocurrency mining has been ongoing for quite some time. As a result, it has kept a close eye on data centers and their operations within its borders.
In 2024, the country announced its decision to introduce new legislation to regulate its data center industry. At the time, Tung noted that it was Norway’s first attempt at scrutinizing the crypto mining industry. The new legislation requires that data centers operating in the country be duly registered. Before that, they must have filed details, which include the owner’s information and the top managers of these centers.
They are also required to list the type of services they offer. Such decisions on legislation would have huge impact on Bitcoin miners and may eventually cause them to move their operations to other regions. However, Tung claimed that the legislation is not intended to stifle innovation but to determine whether projects align with its infrastructural ambitions.
The recent announcement about the temporary ban suggests that the authorities may have spotted many such data centers that are not aligned with its national goals.
Bitcoin Mining and Sustainable Energy Integration
On the other hand, the University of Cambridge recently published results from a study showing that at least half of Bitcoin mining is powered by low-carbon or renewable energy sources. To reach this inference, several regions in the United States, Norway, Paraguay, Kazakhstan, and Canada were surveyed.
North America ranked the highest for having the lowest carbon emissions associated with Bitcoin mining among the regions under survey. In the study, Cambridge checked for different energy sources and carbon footprints linked to Bitcoin miners. In the end, sustainable energy sources emerged as the primary electricity supply source, making up more than 52.4% of the total.
The United States is at the forefront of transitioning to more sustainable energy in the crypto space.
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