Norway Implements Temporary Ban on New Crypto Mining Facilities

Government Order Targets Energy Consumption

On 20th June 2025, the government of Norway announced significant measures to tackle the high energy demands associated with cryptocurrency mining. A plan is set to be initiated in August, which will prohibit the creation of new data centers dedicated to crypto mining. This move aims to manage the substantial energy usage linked to such operations, reflecting a growing concern over energy sustainability.

Ministerial Statement on Regulation

Karianne Tung, the Minister for Digitalisation and Public Administration, reiterated the government’s strong position on restricting cryptocurrency mining activities within the country. This decision is rooted in a wider effort to regulate data centers across various sectors, a legislative initiative first proposed in April. The forthcoming legislation will require the registration of these facilities and the disclosure of ownership, reinforcing the government’s commitment to limit projects deemed harmful or unnecessary.

Norway’s Energy Landscape and Crypto Mining

Norway’s appeal as a hub for crypto mining arises from its affordable and abundant electricity, particularly in the northern regions where both energy and real estate costs remain low. Contributing to roughly 2% of the global Bitcoin mining hash rate, the country’s mining activities are energy-intensive. However, the government is questioning the sector’s overall economic benefits and job creation prospects, which has led to a strategic shift in electricity policy toward other economic sectors that may offer greater returns.

Commitment to Renewable Energy Resources

In addition to the notable oil reserves located in the North Sea, Norway capitalizes on its substantial hydropower resources, attributed to its unique geography. This emphasis on renewable energy sources, which avoids reliance on fossil fuels, highlights Norway’s dedication to sustainable practices and a carbon-neutral future.

This article has been restructured to maintain coherence while providing a fresh perspective on Norway’s stance towards cryptocurrency mining.