THE GLOBAL LOCATIONS USING RENEWABLE ENERGY TO MINE BITCOIN

Bitcoin mining involves the use of large amounts of energy. Across the globe, rural locations with access to renewable energy are turning into crypto mining havens. We discuss this in the article below.  

Mining is the process through which Bitcoin is created. It uses a huge amount of energy in computations that require large amounts of hardware to solve vast equations. This has begun to price many miners out of the Western market. Yet around the globe, countries are turning to Bitcoin mining as a way to increase revenue, and they are doing it with clean energy.  

Bitcoin Mining in Africa 

There are numerous instances of renewable energy being used in African countries to power cryptocurrency mining operations. In Ethiopia, the Grand Ethiopian Renaissance Dam has provided the country with a huge reserve of electrical energy. In the space of a year, 18% of the major electricity providers' profit has come from Bitcoin mining. This is more than the power it exports to neighbouring countries.  

This is a reciprocal deal. Much of the country's electricity grid is not yet developed, and the dam provides more than is needed. Instead of letting it go to waste, it has been sold to Bitcoin miners. Around a billion USD is estimated to have been raised so far, which has gone back into developing the main electricity grid. 

Over the last year, Bitcoin has had an extremely volatile time. This makes it all the more risky for people to fund large-scale investments in developing countries. Yet long-term charts are now beginning to emerge, that show Bitcoin on a gradual upward trend. The Bitcoin price in real-time shows that today it is hovering around the $85,730 mark, but it is up over the last few years and reached an all-time high in January. This is a positive long-term trend for many.  

This use of renewable energy is not an isolated case. From Malawi to Kenya, what is known as microgrids are cropping up. Created by companies like Gridless, they use crypto mining to provide energy to rural locations. A perfect example can be found in the Democratic Republic of Congo, where the Virunga National Park has a Bitcoin mine powered by hydroelectricity.  

Is Crypto Eating Clean Energy? 

This relationship is not one that has proved fruitful across the globe, and there is opposition to it. In Abkhazia, a disputed region between Russia and Georgia, it has proven a real problem. The country has cheap hydropower, which has made it a haven for crypto mining which has been banned in the country.  

In the winter, when water levels drop, so does energy in the region. This can result in frequent power outages. These have grown significantly since the crypto miners popped up. In November last year, services were so bad that power outages lasted every day for four hours.   

The worry is that mining cryptocurrency is taking away renewable energy which could be used by the general population. On continents like South America and Africa, where power is scarce, this could be used for vital services, such as in homes or businesses. 

As it is being used for crypto mining, then people inevitably turn to other forms of fuel. This is generally fossil fuels, which can be harmful to the environment. Angola is one country that has totally outlawed the mining of cryptocurrency and any related energy projects. It has done this to create a future of energy security, in a bill which passed in February 2025.  

Interest From Other Nations

Bhutan is another country that employs the use of its abundant hydroelectricity to mine crypto. Yet it has turned to its reserves of currency to solve a major problem: Its country is developing a large diaspora in relation to its small population, as people leave the country to find better-paid work abroad. This led to huge numbers of people in the civil service quitting in 2023. By the end of the year, it had converted its crypto reserves to money which was put into doubling wages. This resulted in retention and helped solve a marginal labour shortage.  

There have also been discussions with the BRICS countries in association with the Russian Direct Investment Fund to begin Bitcoin mining operations within their countries. Together, these nations have a bigger gross domestic product than the G7. A partnership has already been announced regarding AI, and it is believed this will extend to cryptocurrency mining operations.  Even in the US, companies are turning to clean energy to solve this issue. MARA Holdings recently bought a wind farm in North Texas to power its production costs. Around 50% of its energy now comes from overseas, with huge hydroelectric operations in Paraguay.

This does need to be managed carefully. While there is the capacity for both nations and miners to benefit, many countries will be worried about the cost that it has on their own critical infrastructure. As prices for mining continue to rise in the West, it can only mean more locations will be sought after in the near future.