Thomas Daniels
Ethiopia is emerging as a burgeoning Bitcoin mining hub, with local miners now consuming 600MW of power, a figure expected to increase by year-end. According to Ethan Vera, co-founder and COO of Luxor Mining, the country’s Bitcoin mining operations are gaining significant momentum, supported by data from Ethiopian Electric Power.
With a total installed generation capacity of 5,200MW—predominantly from hydropower, supplemented by wind and thermal sources—Ethiopia is on track to add several hundred megawatts of capacity this year, fueling its ambitions to be a major player in the global mining landscape.
Most Ethiopian mining farms are leveraging mid-tier mining hardware, such as Bitmain’s S19J Pro and Canaan’s A1346 models, which are both cost-efficient and less power-intensive. Vera emphasized that the country’s low electricity rates provide an attractive environment for miners deploying these machines. Additionally, many farms utilize evaporative cooling systems, though the local climate reduces the need for such technology most of the year.
Ethiopia’s strategic entry into Bitcoin mining is part of a broader initiative to advance its infrastructure for data mining and artificial intelligence. Earlier this year, Ethiopian Investment Holdings entered into a preliminary agreement with Hong Kong-based West Data Group to invest $250 million into enhancing the nation’s digital infrastructure, further boosting its capacity to support high-performance computing, including Bitcoin mining.
The global interest in Ethiopia’s mining sector has been heightened by China’s 2021 ban on cryptocurrency mining and Ethiopia’s government-authorized push into the sector in 2022. This combination, alongside the country’s competitive electricity rates, has attracted miners seeking new opportunities. However, despite strides in power generation, around half of Ethiopia’s 120 million citizens still lack access to electricity.
