Ethiopia has raised its Bitcoin mining power capacity to 600MW. Ethan Vera, co-founder and COO of Luxor Mining, pointed to the development in a statement on X, which revealed that the increase places Ethiopia among markets with the highest growth rates in Bitcoin mining.
Vera pointed out that the country's use of mid-generation mining machines, such as Bitmain's S19J Pro and Canaan's A1346 models, is strategically beneficial due to their lower power consumption and affordability.
These developments are part of Ethiopia's broader strategy to enhance its digital infrastructure in support of burgeoning BTC mining activities. The government's investment arm, Ethiopian Investment Holdings, announced a preliminary agreement with Hong Kong-based West Data Group earlier this year. This $250 million project aims to develop further the nation's capacity to support large-scale digital activities, including cryptocurrency mining.
The choice of technology and infrastructure for Bitcoin mining in Ethiopia reflects a nuanced approach to energy use. Vera observed that many mining farms are equipped with evaporative cooling systems, which are largely unnecessary for most of the year due to the country's colder climate. This adaptation optimizes operational costs and aligns with the environmental conditions, maximizing efficiency.
However, expanding mining operations is not without its challenges. Despite an installed capacity of 5,200 MW, more than 40% of Ethiopia's 130 million citizens still lack reliable access to electricity. This disparity underscores the critical balance needed between advancing technological infrastructure and addressing basic utility needs. The government aims to generate 25 GW of renewable energy by 2030, potentially supporting domestic electricity needs and the energy-intensive Bitcoin mining process.
As Ethiopia continues to expand its Bitcoin mining capacity, broader economic implications must be considered. The sector promises a new stream of foreign exchange while positioning Ethiopia as a significant player in the crypto-mining industry. The country's rich potential for hydropower is being tapped not only for national energy requirements but also as a sustainable power source for mining operations.
This growth corresponds with trends in other nations with abundant renewable energy resources to harness their natural advantages to participate in the digital currency mining business. Incorporating Bitcoin mining into the country's energy sector could stimulate technological and economic advancement for Ethiopia.