Oslo, Norway – June 20, 2025
The Norwegian government has announced a temporary ban on the establishment of new cryptocurrency mining data centers. This strategic move aims at conserving electricity for other industrial sectors and addressing growing environmental concerns. The ban is set to be enforced in the autumn of 2025 and marks a significant policy shift from Norway’s previous support for crypto mining operations.
Regulatory Crackdown to Prioritize Energy Use
Minister for Digitalization and Public Administration, Karianne Tung, explained that cryptocurrency mining is highly energy-intensive but yields limited local economic benefits in terms of jobs and income. She stated, “Cryptocurrency mining is very power-intensive and offers little return in jobs or local economic benefits,” highlighting the government’s intention to prioritize electricity supply for industries that create more substantial employment and economic value for Norway.
The ban specifically targets new data centers that employ energy-heavy mining technologies. While existing operations are not immediately affected, the policy signals a broader intention to curb growth in the crypto mining sector within Norway.
From Support to Restriction: A Policy Shift
Previously, Norway had welcomed cryptocurrency mining, benefiting from its abundant hydropower resources and even offering subsidies to attract mining firms until 2018. This made Norway a favored location for miners, including companies like Bitfury and Arcane Green Data. However, rising energy prices and heightened environmental scrutiny since 2021 have prompted a reassessment. Public concerns over energy consumption, noise pollution, and the sector’s overall impact have intensified, leading to calls for stricter regulations.
Notably, a mining facility in the Hadsel municipality was shut down in late 2024 after residents complained about excessive noise. This case also highlighted the complexity of mining’s economic role as the closure increased local electricity bills by eliminating a significant revenue source for the local power company.
Global Context and Industry Implications
Norway’s decision reflects a growing global debate about the sustainability of cryptocurrency mining. Similar restrictions have been implemented in regions of Russia to manage power consumption, with bans in several areas effective until 2031 and seasonal limits in Siberia during peak energy demand periods.
Within Norway, this new regulation aims to divert renewable energy resources away from power-hungry crypto mining and towards industries that produce more substantial local economic benefits and employment. The ban may prompt mining companies operating in Norway to seek relocation to other jurisdictions with more favorable energy policies, potentially impacting the global hash rate distribution.
Conclusion
The Norwegian government’s decision to temporarily ban new crypto mining data centers underscores the tension between the energy demands of cryptocurrency mining and national sustainability goals. The policy embodies Norway’s efforts to balance economic development with environmental stewardship and prioritizes energy usage for sectors that support broader social and economic advantages.
Sources
- Bitcoin News: From Subsidies to Shutdowns – Norway Moves to Restrict Bitcoin Mining
- CryptoSlate: Norway Eyes Crypto Mining Ban Amid Local Firms’ Heavy Investments in Bitcoin
- CryptoBriefing: Norway’s Bitcoin Mining Restrictions
- The Miner Mag: Bitcoin Mining Research June 2025
- Investopedia: How Does Bitcoin Mining Work?
