‘Cryptocurrency miners move to Norway and Sweden to take advantage of cheap hydroelectric energy and low temperatures to power and cool their servers.’ – reported the international news agency Reuters.
In search of paradise for miners
Iceland at the moment is the most popular place in Europe for miners. The cost of electricity in this country is 8 cents. Whereas in Europe, the average price is 11 cents.
How cheap is the electricity in these two Scandinavian countries? In Sweden, 6.5 cents and in Norway 7.1 cents per kilowatt-hour.
“We’re on a global hunt to secure as much power as we can”
said Olivier Russi Newton, director of the Canadian group HIVE Blockchain Technologies, which mine the Ethereum in Sweden.
Major miners move to Scandinavia
In addition, the company HIVE Blockchain Technologies said it is expanding its power generation capacity for its mining industry in Sweden to 17.4 megawatts, while the possibilities could increase to 26.8 MW by September. Last month, he agreed to buy Kolos Norway AS for $ 9.9 million to expand its mining activities.
In March, American mining company Bitfury opened a new mining farm in Norway worth $ 35 million. So miner is going to buy 350-gigawatt hours of energy from a local renewable energy supplier Helgeland Kraft.
The share of China accounts for about 70 percent of the cryptocurrency mining. But noteworthy Beijing hinders the development of this industry due to pollution from coal energy. That forced the miners to look for new places.
“A lot of miners are keen to get into Norway and that includes Bitmain”
says Mark Collins, head of CBH Consulting AG, a consultant on clean energy in Zurich, who works in the blockchain industry.
In turn, Bitmain representative Nishant Sharma said that the company would announce an expansion in Europe and other regions as they arise. He said he did not know any “special plans” for Sweden or Norway.
Opportunity for local companies
It is worth mentioning that both in Norway and in Sweden are happy with this opportunity. That is an excellent opportunity for large electricity producers in these countries. Since large buyers of electricity, i.e., the miners move to their home. Sweden’s Vattenfall and Norway’s Statkraft are the most significant producers in these countries.
Norway recently changed tax rules to exempt data centers from paying property taxes
in a bid to attract foreign companies.