Norway has decided to temporarily ban the launch of new crypto mining data centers to reduce energy usage. The ban will take effect in August and aims to curb the significant energy consumption associated with mining activities.
Ban on New Mining Centers
On June 19, 2023, the Norwegian government announced a temporary ban on new data centers that mine crypto. The ban, set to take effect in August, is intended to limit the energy consumption related to this activity.
Reasons for the Ban
Minister for Digitalization and Public Administration Karianne Tung stated, 'The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible.' This decision is part of a broader approach to regulate crypto mining in the country.
Norway's Energy Policy
With cheap and abundant electricity, Norway has become a hub for crypto mining, particularly in the northern regions. However, the government does not believe that mining contributes significantly to the local economy and job creation, and aims to prioritize electricity use for other sectors. The country also benefits from significant hydropower capacity, making it a more sustainable option from a carbon-neutral perspective.
The introduction of a temporary ban on new crypto mining centers demonstrates Norway's strategic approach to electricity use and its commitment to sustainable development.
