From Subsidies to Shutdowns: Norway Moves to Restrict Bitcoin Mining

The Norwegian government has announced plans for a temporary ban on new data centers engaged in power-intensive cryptocurrency mining, in an effort to conserve electricity for other industries.

Crypto Mining Generates Little for Local Community

Norway’s government announced June 20 its intention to implement a temporary ban on the establishment of new data centers engaged in the most power-intensive cryptocurrency mining. The move is aimed at conserving the nation’s electricity supply for other industrial sectors.

Karianne Tung, Norway’s Minister for Digitalization and Public Administration, stated that the Labour Party government has a “clear intention to limit the mining of cryptocurrency in Norway as much as possible.” Tung emphasized the rationale behind the impending ban, noting, “Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community.”

The temporary ban is anticipated to be introduced during the autumn of 2025. This decision underscores Norway’s evolving stance on cryptocurrency mining, moving toward a more restrictive approach to prioritize energy resources for industries deemed to offer greater economic and social benefits.

Up until 2021, Norway had largely embraced bitcoin mining, prompting companies like Bitfury, Bitzero, Bitdeer, Kryptovault and Arcane Green Data to establish significant mining operations in the country. However, starting in late 2021, rising energy prices began to impact the profitability of miners, forcing some of them to relocate to the northern part of the country.

Furthermore, the sheer proportion of electricity consumed by crypto mining soon piqued the interest of policymakers worried about the environmental impact. Critics, meanwhile, argued that the country’s hydroelectricity could be better utilized for other industries that generate more jobs and income for local communities.

In April 2024, Norway passed new data center legislation, which gave politicians powers to single out projects they did not want. The announcement of the temporary ban on “very power-intensive” crypto mining represents a major policy shift for a country that, until 2018, was offering subsidies to bitcoin mining farms.