Bitcoin Miners Face Pressure in Norway as New Legislation for Data Centers Implemented
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Bitcoin Miners Face Pressure in Norway as New Legislation for Data Centers Implemented

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1 month ago

Norway has passed new legislation that will impose stricter regulations on data centers operating within the country.

Bitcoin Miners Face Pressure in Norway as New Legislation for Data Centers Implemented
Norway has passed new legislation that will impose stricter regulations on data centers operating within the country. The legislation mandates the official registration of all data centers, requiring information about their owners, leaders, and the digital services they provide. Norway becomes the first European nation to establish such a comprehensive framework.

Norway's move to regulate data centers follows the country's concerns over large greenhouse gas emissions associated with crypto mining. Terje Aasland, Norway's Minister of Energy, stated that they are not interested in businesses seeking to exploit Norway for cheap energy extraction. The primary objective of this legislation is to provide politicians with a clearer understanding of data centers in their municipalities. Aasland emphasized that the aim is to regulate the industry and have the ability to reject undesirable projects.

While the legislation is not explicitly targeted at Bitcoin miners, it could potentially lead to increased scrutiny for them. This comes at a time when Bitcoin miners are already preparing for the upcoming halving event, which will reduce block issuance rewards by half, potentially impacting the profitability of mining operations. Currently, numerous Bitcoin mining firms are operating in northern Norway, attracted by the region's low electricity costs. A report from local media outlet Dagsavisen in 2023 revealed that crypto mining firms in this area consume nearly as much electricity as the entire district of Lofoten.

While the government does not have an exact count of the number of Bitcoin mining firms in the country, the new legislation will provide valuable information to support Norway's digitalization plans. Karianne Tung, Norway's Minister of Digitalization and Public Governance, highlighted the significance of data centers that serve beneficial roles, such as storage servers, which are considered crucial for the country's social structure.

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