Ethiopians Question Energy Priorities Amid Crypto Mining Boom

Ethiopia’s rapid expansion in crypto mining has triggered significant debate over national energy priorities. The crypto mining and data center sector is projected to consume about one-third of Ethiopia’s electricity supply in 2025—over 8 terawatt hours (TWh), according to the Ethiopian Energy Outlook 2025, a report by state-owned firms and the Petroleum and Energy Authority. This surge in demand comes as nearly half of Ethiopia’s population still lacks reliable access to electricity, and only 22% have legal, metered grid connections.

Critics argue that such high energy allocation to crypto mining is inappropriate in a country where millions of households await their first grid connections and essential services like clinics and agriculture often struggle with unreliable power. While Addis Ababa enjoys an electrification rate of about 93%, regions such as Afar and Somali remain below 12%. There are concerns that diverting energy to crypto mining undermines broader development goals, including rural electrification, industrialization, and job creation.

Although crypto mining brings in foreign investment and leverages Ethiopia’s abundant renewable hydropower—98% of the country’s energy mix—most mining operations are run by foreign companies, primarily Chinese, and much of the profit leaves the country. Local economic benefits are limited: employment is minimal, and the bulk of mined cryptocurrency is stored or traded abroad. Meanwhile, Ethiopian manufacturers and industrial parks report frequent power outages, further highlighting the trade-off between digital infrastructure growth and local development needs.

Ethiopian Electric Power (EEP) reportedly generated about $1 billion in 2024 from electricity sales to Bitcoin miners, significantly outpacing electricity export revenues to neighboring countries. However, this revenue windfall is weighed against concerns that essential services and industrial growth are being neglected in favor of short-term gains.

The government’s embrace of crypto mining has included quietly registering mining firms and offering below-market power rates. Yet, there are discussions about increasing electricity tariffs by up to 400% by 2028, which analysts expect could dampen crypto mining activity and address some of the current imbalances.

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