Ethiopia harnesses low-cost energy for Bitcoin mining from renewable sources

Ethiopia is quickly becoming a key player in Bitcoin mining, with local operations already consuming 600 MW of power, Ethan Vera, the co-founder and COO of Luxor Mining, reported, citing data from Ethiopian Electric Power.

In an Oct. 8 post on X, Vera stated 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 consume less power, making them ideal for Ethiopia, where electricity costs are low.

He added:

“Most mining farms had evaporative cooling (water walls) set up, although its not needed for the majority of the year given the cold climate.”

Meanwhile, Vera emphasized that Ethiopia is poised to add hundreds of megawatts of capacity by year-end, solidifying its place in the global mining market.

Kal Kassa, a local Bitcoin miner, confirmed these trends, sharing images of newly established mining facilities.

Similarly, Seb Gouspillou, CEO of BigBlock Datacenter, echoed this sentiment, highlighting the potential for hydropower in Africa. He stated:

“For the Hydro electricity sector, it’s like a miracle. The fact that all the African dams currently under construction can be guaranteed to sell as much electricity as they can produce was unimaginable until now. Bitcoin fixes this.”

These developments align 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 branch, 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 to support BTC mining activity.

However, challenges remain. Despite an installed capacity of 5,200 MW, over 40% of Ethiopia’s 130 million citizens still lack access to electricity. The country aims to generate 25 GW of renewable energy by 2030, but access to power remains a significant hurdle for Bitcoin mining expansion.

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