Ethiopia is emerging as a significant player in Bitcoin mining by leveraging its low-cost, renewable energy. Local mining operations currently consume around 600 MW of power, according to data from Ethiopian Electric Power, shared by Ethan Vera, co-founder and COO of Luxor Mining. Many mining facilities in the country use mid-range machines, including Bitmain’s S19J Pro and Canaan’s A1346 models, which are affordable and energy-efficient—ideal for Ethiopia’s low electricity costs.
Ethiopia’s cold climate allows mining facilities to minimize cooling costs, with most using simple evaporative cooling systems, which are only needed part of the year. Vera expects Ethiopia to add several hundred megawatts of mining capacity by year-end, solidifying its growing role in the global Bitcoin mining market.
Local miner Kal Kassa shared images of new mining facilities, highlighting the rapid development, while Seb Gouspillou, CEO of BigBlock Datacenter, noted Africa’s untapped hydropower potential. “For the hydroelectricity sector, this is transformative,” he stated, explaining that Bitcoin mining can create a steady demand for electricity generated by Africa’s dams, many of which have struggled to find consistent buyers in the past.
Ethiopia’s mining expansion aligns with a recent report from asset management firm VanEck, identifying the country as one of seven nations mining Bitcoin with government support. Earlier this year, Ethiopian Investment Holdings signed a preliminary $250 million agreement with Hong Kong-based West Data Group to enhance the country’s digital infrastructure for Bitcoin mining.
However, challenges remain: despite an installed capacity of 5,200 MW, over 40% of Ethiopia’s 130 million residents still lack access to electricity. Ethiopia aims to reach 25 GW of renewable energy by 2030, though extending access to all remains a significant hurdle for further Bitcoin mining growth.