Ethiopia is emerging as a fast-growing Bitcoin mining hub, with local miners currently consuming 600 MW of power and more capacity expected to come online this year.
Ethan Vera, co-founder and COO of Luxor Mining, said in title X, citing data from Ethiopian Electric Power, that Ethiopia’s Bitcoin (BTC) mining industry is gaining momentum, with crypto miners currently consuming 600 MW of power.
The country, which has an installed production capacity of approximately 5,200 MW, mainly from hydroelectricity and the rest from wind and thermal sources, is expected to add a few hundred megawatts of capacity by the end of the year within the scope of rapid growth. Vera says the global mining market is important.
The Luxor Mining co-founder noted that most mining operations use mid-generation machines such as Bitmain’s S19J Pro and Canaan’s A1346 models. These machines, which are generally more affordable and consume less energy, benefit from Ethiopia’s low electricity costs, making it “a great place to use this class of machines,” Vera says.
“Most mining farms had evaporative cooling (water walls) installed, but given the cold climate this was not needed for much of the year.”
Ethan Vera
Ethiopia’s strategic move into Bitcoin mining is in line with its broader efforts to develop infrastructure for data mining and AI training.
In February, Ethiopian Investment Holding announced a preliminary agreement with Hong Kong-based West Data Group to support a $250 million project to develop the country’s digital infrastructure. While details of the deal remain unclear, the government has repeatedly referred to such initiatives as part of its high-performance computing strategy that also includes Bitcoin mining.
China’s ban on crypto mining in 2021, combined with Ethiopia’s government entry into the industry in 2022, has led to increased interest from miners seeking new opportunities in regions with lower electricity costs. Despite progress in expanding electricity supply, nearly half of Ethiopia’s 120 million people still do not have access to electricity.