- Norway will temporarily ban Bitcoin mining to reduce electricity strain starting in 2025.
- The government aims to restrict new power-intensive data centres amid rising energy concerns.
- Sustainable energy use in Bitcoin mining is gaining momentum, with the U.S. at the forefront.
Norway will introduce a temporary ban on Bitcoin mining activities beginning in autumn 2025. This decision is a result of concerns raised about the excessive power consumption associated with mining. The government hopes that this step will alleviate pressure on the energy system and increase the efficiency of electricity consumption in other industries.
In Norway, cheap electricity has led to the thriving of Bitcoin mining activities. This, however, is set to be affected because the government intends to limit the expansion of data centres used in mining. Reuters reported that Norway plans to temporarily halt the establishment of new data centers, particularly those with power-intensive technology. The Minister of Digitalization, Karianne Tung, explained that such a move will save power and distribute resources more efficiently.
Global Actions on Bitcoin Mining
The move by Norway reflected a similar activity by other nations. Earlier this year, Russia started restricting mining in 10 regions to avoid power outages. In 2021, China faced a countrywide ban, and as a result, numerous miners left the Country and traveled to the U.S. The U.S. still permits mining to occur in most of its states, despite current energy concerns.
In 2024, the Norway government introduced new legislation to oversee data center operations. This legislation requires that all mining centers be identified and provide comprehensive data on their operations, including ownership information. The new regulations are intended to align mining activities with national energy objectives and the infrastructure prospectus. The temporary ban in Norway is the aftermath of this move toward increased control of mining.
Related: US Going Full Bitcoin: Arizona & Florida Pass Pro-Crypto Bills
The ban may result in Bitcoin miners relocating their operations to a country with fewer restrictions. The Norway government has, however, stated that its interest is not in preventing innovation, but in securing opportunities to meet national energy objectives. The aim is to create a balance between the aspect of technology employed and the accountable use of resources.
Sustainable Energy in Bitcoin Mining
The worldwide tendency is towards the acceptability of sustainable energy in the Bitcoin mining process. The University of Cambridge study revealed that more than 50% of Bitcoin mining is powered by low-carbon or renewable energy. Among the countries that are advancing in this respect are the U.S., and Canada.
