Ethiopia Emerges as a Bitcoin Mining Powerhouse Amid Rapid Energy Expansion

Ethiopia Emerges as a Bitcoin Mining Powerhouse Amid Rapid Energy Expansion

Ethiopia is rapidly emerging as a key player in the Bitcoin mining industry, with local mining operations already consuming 600MW of power, according to Ethan Vera, co-founder and COO of Luxor Mining. Vera shared this information in a recent post on X (formerly Twitter), citing figures from Ethiopian Electric Power.

The country’s total installed power generation capacity currently stands at around 5,200 MW, primarily driven by hydropower, with additional contributions from wind and thermal energy sources. Ethiopia is expected to add several hundred megawatts of new capacity by the end of the year, further cementing its position in the global Bitcoin mining market, Vera explained.

Most of the mining operations in Ethiopia are reportedly using mid-tier machines, such as Bitmain’s S19J Pro and Canaan’s A1346 models. These machines, while not the latest in technology, are more affordable and energy-efficient, making them ideal for the country’s low-cost electricity environment. Vera highlighted that Ethiopia’s cooler climate, particularly in high-altitude regions, reduces the need for extensive cooling systems, though many farms still use evaporative cooling setups (water walls) as a precaution.

Ethiopia’s move into Bitcoin mining is part of a larger strategy to enhance its digital infrastructure, including data mining and artificial intelligence development. Earlier this year, Ethiopian Investment Holdings announced a $250 million preliminary agreement with Hong Kong-based West Data Group to bolster the nation’s digital capabilities. Although specifics of the project are still unclear, the government has framed it within its broader high-performance computing goals, which also include Bitcoin mining.

Following China’s 2021 ban on cryptocurrency mining, Ethiopia has emerged as an attractive alternative, with its government pushing to expand the sector since 2022. However, despite the country’s progress in growing its electricity supply, nearly half of Ethiopia’s population of 120 million still lacks access to electricity. This imbalance presents a challenge as the nation moves forward with its ambitious energy and digital expansion plans.