Norway will temporarily ban new bitcoin mining centers from autumn 2025. The decision is part of the government’s plan to save energy and prioritize it for industries that it believes would benefit the country and society more.
New digital asset projects, especially those using the most energy-hungry tech, are the target. Digital assets mining, especially bitcoin, uses a lot of energy and that seems to have become a concern for government officials.
“Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community,” says Karianne Tung, Norway’s Minister for Digitalization and Public Administration.
“As a Labor Party government, we have a clear goal to limit cryptocurrency mining in Norway.”
Although Norway produces most of its electricity from hydropower, officials argue that the energy used by mining operations could be better used in other sectors like manufacturing and public services.
The temporary ban only applies to new bitcoin mining data centers. Existing mining operations will not be affected for now but no new facilities will be allowed to start once the ban kicks in in fall 2025.
The government clarified that the ban is focused on data centers using the most energy-demanding mining equipment, which are often the ones that put the most strain on the power grid.
This decision comes as some countries and regions are utilizing bitcoin mining to stabilize their power grid, as the load can be easily switched on and off, a characteristic that other industries lack.
This is following an earlier decision in April 2024 when Norway passed a law requiring all data centers, including those involved in bitcoin mining, to register and disclose ownership. This is part of the government’s effort to regulate digital assets and align with national energy priorities.
“[We will] close the door on the projects we do not want,” Tung said when the law was introduced.
In the last few years, Norway, especially the northern regions, has become a popular destination for digital asset miners. The country’s cheap and abundant electricity and cool climate made it an attractive location for large-scale bitcoin mining centers.
As a result, Norway contributes around 2% of the global bitcoin mining hash rate according to industry estimates.
In a related series of events in late 2024, residents in Hadsel forced a major bitcoin mining site to shut down due to noise. That shutdown led to a price increase in local electricity as the mining facility was a big contributor to the local utility’s income.
The bitcoin mining industry is getting greener, as reports show it’s using more and more renewable energy.
A University of Cambridge study found that over 50% of global bitcoin mining is powered by low-carbon or renewable energy. But the Norwegian government thinks that’s not enough to justify large-scale mining in a country where other industries could use the energy better.
The Norwegian government believes it is looking at the bigger picture: energy allocation, environmental impact and economic contribution.
