Ethiopia is rapidly expanding its electricity supply for Bitcoin mining, positioning itself as one of the fastest-growing markets for this activity.
The country plans to further increase its capacity this year, with many miners using energy-efficient machines that consume less power.
Bitcoin mining in Africa
Ethiopia raised its electricity allocation for Bitcoin mining to 600 megawatts, according to Ethan Vera, co-founder and CEO of Luxor.
He mentioned that the country intends to add several hundred more megawatts by the end of the year. Vera recently visited various mining farms in Ethiopia and noted that many operations are utilizing mid-generation machines like the S19J Pro and A1346, which are popular due to their lower energy consumption.
He also observed that most mining farms have set up evaporative cooling systems, though these are not usually needed in Ethiopia’s cooler regions.
Earlier this year, Ethiopia expressed its ambition to become a leading player in Bitcoin mining by signing power supply agreements with 21, mainly Chinese mining firms.
This move, along with the commissioning of the Grand Ethiopian Renaissance Dam, is expected to provide a new source of foreign exchange for the country while attracting more miners.
Bitcoin mining in Ethiopia
Ethiopia currently uses only about 5% of its 4.9 gigawatts of hydroelectric power because only half of its population has access to electricity.
The state electricity company has struggled to build the necessary infrastructure to reach all citizens.
Reports suggest that Bitcoin miners could use the excess electricity to generate revenue that would help fund improvements in power distribution. In the Bitcoin community many cheering this method as a clear win-win situation.
The cleanest industry
If regulators like the Ethiopian Information and Network Security Administration take steps to reduce bureaucratic hurdles, the country could effectively leverage its surplus renewable energy for Bitcoin mining.
This would not only help improve infrastructure but also create economic opportunities in a nation where many still lack reliable access to electricity.
The growing interest in Bitcoin mining in Ethiopia reflects a bigger trend where countries with abundant clean energy resources are looking to capitalize on this industry.
As Ethiopia continues to develop its capabilities in this area, it could set an example for other nations with similar resources seeking economic growth through mining.
