Single Mining Farm Requires As Much Electricity as 24,000 Households, Estimates in Kazakhstan – Mining Bitcoin News

Authorities in Kazakhstan have calculated energy consumption in the country's crypto mining industry, which competes for electricity with other economic sectors and households. The government has also estimated the additional supply needed to meet growing demand from mining operations and proposed a cap on the rated output of new plants.

Kazakhstan measures electricity consumption in crypto mining sector, estimates deficit

Explaining why Kazakhstan is considering imposing restrictions on new cryptocurrency mining operations, the Energy Ministry told local media that Data Center Minting digital coins uses 5 megawatts (MW) of electricity every hour. Just a single mining facility burns an average of 3.6 million kilowatts (kW) per month, the ministry said, noting that this is equivalent to the consumption of 24,000 households.

What China was like take tough action On cryptocurrency miners, the Central Asian nation has become an attractive destination for many this year Pursue from mining with its low energy prices. As a result, electricity consumption rose 7.4% to almost 83 billion kilowatt hours (kWh) in the first nine months of this year, government figures show.

Officials in Nur-Sultan already have accused the top of around 50 mining operations in the country. With a total project capacity of over 972 MW, the current load on Kazakhstan's electricity distribution network is estimated at more than 693 MW.

In addition, electricity consumption due to illegal mining facilities is also likely to have increased. The Department of Energy told Business news portal LS states that the excess consumption growth attributed to mining centers is around 1,050 MW, while the share of underground crypto miners is estimated in the range of 250 to 450 MW.

Government wants capacity of new mining farms up to 100 MW

To meet the growing needs of the mining industry, an increase in power generation of at least 1,000 MW would be required, which can be done over the next four to five years, the department noted. Kazakhstan's Energy Minister Magzum Mirzagaliev said in early October that the government intended to build power plants with a total capacity of 3,000 MW in the same period.

To prevent the situation from worsening, the ministry recommends a capacity limit of 100 megawatts for new consumers connecting to the grid. The measure is expected to impact projects to build crypto mining farms in the country.

This is not the only bad news for cryptocurrency miners and potential investors. This month the legislature passed a Suggestion To introduce registration for mining companies operating in the country. Concerned about the growing energy consumption in the industry, a group of Mazhilis MPs also called for the introduction of higher electricity tariffs for companies involved in digital currency extraction.

Do you expect Kazakhstan to limit the size of crypto farms and impose other restrictions and tariffs on the coin mining sector? Tell us in the comments section below.

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