Norway’s government said Friday it intends to introduce a temporary ban on new cryptocurrency data centres using power-intensive mining methods, citing energy concerns and limited local economic benefits.
The proposed moratorium would apply to facilities relying on proof-of-work technology, which is used to mine cryptocurrencies like Bitcoin. The ban could take effect in autumn 2025, pending parliamentary approval.
“The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible,” Digitalization and Public Administration Minister Karianne Tung said in a statement.
Crypto Mining Energy Use Under Scrutiny
Authorities say the mining method consumes significant electricity with little return in jobs or local revenue. Though Norway’s energy grid relies largely on hydroelectric power, growing demand from emerging industries has raised concerns over grid capacity and national energy priorities.
According to government data, crypto mining in Norway consumed about 0.7 terawatt-hours of electricity in 2023, roughly the same as 44,000 households. Officials say directing that power to other sectors, such as housing or battery production, could deliver greater long-term benefits.
Under the draft proposal, new proof-of-work mining centres would not be eligible for grid connections or local construction permits. Facilities using less energy-intensive alternatives like proof-of-stake may not be affected.
Industry Pushback, Legislative Timeline
The Norwegian Blockchain Association responded by urging lawmakers to reconsider a blanket freeze. “We support responsible energy use, but a full ban ignores opportunities for cleaner innovation in crypto technologies,” the group said.
Parliament is expected to review the proposed law in early 2025. If passed, the government will determine how to regulate existing operations and clarify which mining methods are subject to restrictions. The Ministry of Energy has begun assessing the size and scope of current mining activities.
Tung said clear rules are needed to help municipalities, grid operators, and investors make informed decisions. “This is about balancing digital innovation with responsible energy use,” the Minister stated.
