Kazakhstan To Restrict Electric Power To 100MW For Bitcoin Mining

Kazakhstan estimates that a single mining farm requires as much energy as 24,000 homes.

In what has become the world’s second-largest bitcoin mining country, new miners will have to consume less than 1 MW over the course of two years in Kazakhstan.

Kazakhstan’s Ministry of Energy intends to limit the nation’s crypto mining industry’s electricity use to a total of 100 megawatts (MW) in order to alleviate power shortages.

According to an Oct. 1 draught signed by the newly appointed energy minister, Magzum Maratuly Myrzagaliev, all newly permitted facilities will be limited to using only 1 MW for a period of two years. The ministerial order does not specify when the limitation will terminate.

After a crackdown in China that began in May pushed out crypto mining businesses, Kazakhstan has become the second-largest contributor to the bitcoin network.

According to the Cambridge Centre for Alternative Finance, it now accounts for 18% of worldwide hashrate, a measure of computing power used to mine bitcoin.

CEO of Compass Mining Whit Gibbs shared an insight of the matter, tweeting the internal causes and consequences of Kazakhstan limiting bitcoin mining.


The 1 MW limit is significantly lower than what many contemporary industrialised mines require, but it is higher than what many small communities require.

BIT Mining, for example, announced earlier this week that it will invest in a location in Ohio to increase capacity to 100 MW. The ministerial order takes effect 60 days after it is published in the Federal Register.

The Central Asian country’s electrical grid is being put to the strain due to increased demand for electricity. Almaty, Kazakhstan’s largest city, experienced a total blackout in mid-July.

KEGOC Plant in Kazakhstan

According to Reuters, coal facilities had disruptions in October, adding to the power shortages. According to local news site Kazakhstan Today, the energy minister blamed the crypto mining surge for the power shortages at a conference on September 30.

The order also required KEGOC, the country’s national grid operator, to conduct a 10-day audit of any power stations with a capacity of 5 MW. KEGOC will investigate options for crypto miners to connect to power plants and report its results to the government.

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