Ethiopia is quickly becoming a prominent Bitcoin mining destination, with local miners currently consuming 600MW of power and plans to increase capacity even further this year. According to Ethan Vera, the co-founder and COO of Luxor Mining, Ethiopia’s Bitcoin mining industry is on the rise, with data from Ethiopian Electric Power confirming the significant power consumption by crypto miners.
With an installed generation capacity of approximately 5,200 MW, mostly from hydropower sources, Ethiopia is set to add several hundred more megawatts by the end of the year to accommodate the growing demand from the mining sector. Vera highlighted that many mining operations in the country are utilizing mid-generation machines like Bitmain’s S19J Pro and Canaan’s A1346 models, which are more cost-effective and energy-efficient. The low electricity costs in Ethiopia make it an ideal location for these types of machines to thrive.
In addition to Bitcoin mining, Ethiopia is also focusing on developing infrastructure for data mining and artificial intelligence training. This strategic move aligns with the government’s broader initiatives to enhance the country’s digital capabilities. Earlier this year, a $250 million project was announced between Ethiopian Investment Holdings and Hong Kong-based West Data Group to strengthen the nation’s digital infrastructure, with a specific emphasis on high-performance computing and Bitcoin mining.
The recent ban on crypto mining in China in 2021 has prompted many miners to seek new opportunities in regions with lower electricity costs, making Ethiopia an attractive choice. Despite advancements in expanding the electricity supply, around half of Ethiopia’s population still lacks access to electricity. The government’s authorized push into the Bitcoin mining sector is not only creating economic opportunities but also driving progress in improving access to electricity for its citizens.
As the global landscape of Bitcoin mining continues to evolve, Ethiopia’s emergence as a key player in the industry is a testament to its commitment to innovation and technological advancement. The country’s efforts to develop its digital infrastructure and embrace emerging technologies like cryptocurrency mining position it as a significant player in the global market.