Norway Temporarily Bans New Crypto Mining Hubs
In an effort to control energy consumption, on Friday, June 20, the Norwegian government announced it would temporarily ban the establishment of new crypto mining data centers from August. The action is an indication of the country’s measures to limit the growth of energy-guzzling mining hubs.
Norway’s Labour Party government is determined to limit cryptocurrency mining in Norway as far as possible,” said Karianne Tung, Digitalization and Public Administration Minister.
Regulation Designed to Reduce Energy Usage
The state of emergency ban is also a component of an overall drive to curb excessive energy use throughout the digital economy. In April, Norway introduced in effect a bill that required all data centers, including crypto mining ones, to register and disclose ownership. The government hopes this move will close the door to unwanted and unregulated projects.
Minister Tung explained that the campaign is focused on operations that clog Norway’s power grid without generating significant economic or social returns.
Role of Norway in the Global Crypto Mining
Norway has become a top player in world Bitcoin mining, contributing around 2% of the global’s hash rate. This can be primarily attributed to the availability of cheap, clean, and abundant hydropower, notably the northern region of the country.
But authorities argue that despite the technological upgrade of mining processes, they generate minimal local jobs or economic benefits—raising doubts whether so much electricity is justified.
Giving Priority to Electricity for National Needs
Though Norway is rich in hydropower and North Sea oil, now the government looks to redirect electricity into more productive and more sustainable business. The new policy is part of a broader European movement where countries are rethinking digital infrastructure’s role in their economic and climate agendas.
As the August ban approaches, the future of crypto mining in Norway is under closer examination—and even stricter rules perhaps in the near term.
