Ethiopia harnesses low-cost energy for Bitcoin mining from renewable sources
Oct. 9, 2024, 12:47 p.m.
Read time estimation: 3 minutes.
4
Ethiopia is rapidly becoming a key player in Bitcoin mining, with local operations already consuming 600 MW of power, according to Ethan Vera, the co-founder and COO of Luxor Mining. He cited data from Ethiopian Electric Power.
In an Oct. 8 post on X, Vera noted that most mining facilities use mid-generation machines, such as Bitmain’s S19J Pro and Canaan’s A1346 models. These machines are more affordable and energy-efficient, making them ideal for Ethiopia, where electricity prices are low.
He added:
“Most mining farms had evaporative cooling (water walls) set up, although it isn't necessary for most of the year due to the cold climate.”
Meanwhile, Vera emphasized that Ethiopia is on track to add hundreds of megawatts of capacity by year-end, solidifying its position in the global mining market.
Kal Kassa, a local Bitcoin miner, confirmed these trends, sharing images of newly constructed mining facilities.
Similarly, Seb Gouspillou, CEO of BigBlock Datacenter, echoed this view, emphasizing the potential of hydropower in Africa. He said:
“For the Hydro electricity sector, it’s like a game-changer. The fact that all the African dams currently under construction can be assured to sell as much electricity as they can produce was inconceivable until now. Bitcoin has solved this issue.”
These developments are in line with an earlier report from asset management firm VanEck, which identified Ethiopia among seven nations mining Bitcoin with direct government support.
Earlier this year, the government’s investment arm, Ethiopian Investment Holdings, announced a preliminary agreement with Hong Kong-based West Data Group for a $250 million project to enhance the nation’s digital infrastructure in support of BTC mining operations.
However, significant hurdles remain. Despite having an installed capacity of 5,200 MW, over 40% of Ethiopia’s 130 million citizens still lack access to electricity. The nation aims to generate 25 GW of renewable energy by 2030, but access to power remains a substantial obstacle for Bitcoin mining expansion.