The country's Bitcoin (BTC) mining industry is gaining momentum, with crypto miners currently consuming 600MW of power
Ethiopia is quickly becoming a major hub for Bitcoin mining, with local miners already consuming 600MW of power and more capacity expected to come online this year.
According to Ethan Vera, co-founder and COO of Luxor Mining, Ethiopian Electric Power data shows that crypto miners in the country are currently using 600MW of electricity.
Vera stated in an X thread that the country, which has an installed generation capacity of about 5,200 MW, primarily from hydropower, with the remaining coming from wind and thermal sources, is expected to add several hundred more megawatts of capacity by the year's end as part of its rapid expansion in the global mining market.
The majority of mining operations are using mid-generation machines like Bitmain's S19J Pro and Canaan's A1346 models, according to the Luxor Mining co-founder. These machines, which are typically more affordable and use less energy, benefit from Ethiopia's low electricity costs, making it a "great place to use this class of machine," Vera said.
"Most mining farms had evaporative cooling (water walls) set up, although its not needed for the majority of the year given the cold climate."
Ethan Vera
Ethiopia's strategic entry into Bitcoin mining aligns with its broader efforts to establish infrastructure for data mining and artificial intelligence training.
In February, Ethiopian Investment Holdings announced a preliminary agreement to support a $250 million project with Hong Kong-based West Data Group to enhance the country's digital infrastructure. While the specifics of the deal remain unclear, the government has consistently mentioned such initiatives in the context of its high-performance computing strategy, which includes Bitcoin mining.
Miners seeking new opportunities in regions with lower electricity costs have shown increasing interest in Ethiopia following China's 2021 ban on crypto mining and the government-authorized entry into the sector in 2022. Despite progress in expanding its electricity supply, about half of Ethiopia's 120 million people still lack access to electricity.
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