David Edwards
The Norwegian government is advancing a proposal to temporarily ban the construction of new data centers dedicated to energy-intensive cryptocurrency mining—specifically those employing proof-of-work (PoW) systems, such as Bitcoin. The measure is expected to come into effect by fall 2025, subject to final approval.
The move, confirmed by Norway’s Minister of Digitalization Karianne Tung via a statement to Reuters, is aimed at reallocating national electricity capacity to sectors deemed more productive and socially beneficial. “Cryptocurrency mining consumes a lot of energy and contributes little in terms of employment or income to local communities,” Tung said, signaling a policy shift away from favoring crypto operations in the Nordic nation.
Proof-of-work, the backbone of Bitcoin’s blockchain validation process, has long drawn scrutiny for its intensive energy requirements. While Norway’s hydropower-driven energy grid made it a hub for sustainable mining in recent years, concerns over electricity allocation have grown.
Facilities like Kryptovault, near Oslo, consume up to 40 MW of renewable energy, which some operators recycle for heating or industrial use. Yet critics argue that such consumption, regardless of its clean source, diverts critical energy away from high-priority sectors such as advanced manufacturing, artificial intelligence computing, and public infrastructure heating.
Despite the controversy, Norway’s global share of Bitcoin mining remains modest. It contributes approximately 0.74% of the global Bitcoin hashrate, ranking 11th worldwide. However, the country has played a strategic role for miners seeking low-cost, renewable electricity.
The proposed ban would not affect existing mining operations but would halt any future expansion, marking a significant change in Norway’s digital energy strategy.
