According to a report, Norway is drafting new laws to control data centres across the country and oversee the operations of Bitcoin miners.
TakeAway Points:
- Norway is introducing new legislation to regulate data centres nationwide and provide oversight on the activities of BTC miners.
- The report states that every data centre must register with the relevant authorities and provide comprehensive details about their services and ownership structure.
- The new legislative emphasis on data centres in Norway is a response to the growing worries about Bitcoin mining.
Norway’s new Data Centre Legislation
According to the law, every data centre must register with the relevant authorities and provide comprehensive details about their services and ownership structure.
The ministries of digitalization and energy in Norway have prepared what they believe is the first legislation in Europe to oversee the nation’s rapidly expanding data centre business, according to local media outlet VG.
The government’s stance was revealed by Norway’s Energy Minister, Terje Aasland, who said that the country does not want data centres associated with cryptocurrencies.
“They are not welcome in Norway. We want serious actors who are important to society, and the society-serving computer industry is important to us,” he said.
Aasland added that data centres set up for Bitcoin mining has increased in Northern Norway, a region well-known for its reasonably priced electricity.
This most recent action by the Norwegian government is consistent with research published in 2023 by Dagsavisen, which found that cryptocurrency mining activities in Northern Norway use almost as much electricity as the entire Lofoten area, which is thought to have 24,500 citizens.
The minister restated the function of data centres in Norway’s social structure, emphasising their importance in protecting communication and picture storage, both of which he views as essential to the country’s progress.
Miners and Norway’s Hydropower
Norway’s abundance of hydropower is a draw for miners. The Nordic region produces 100% of its electricity from renewable sources, making it the second-highest electricity producer in the world per capita.
The nation also has affordable energy costs, with averages between $10 and $50 per megawatt-hour (MWh) between 2013 and 2020.
Aasland emphasised the significance of responsible energy use and voiced his disdain for those who are only looking to profit from the region’s inexpensive electricity.
If the bill is passed, there may be more oversight and regulatory obstacles for Bitcoin miners in the nation as their electricity usage would be restricted, much as has been documented in Canada’s British Columbia Province. It could be challenging for those looking to start new mining operations or grow current ones to get the required permissions.
Bitcoin Miners may sell $5 Billion Following the Halving Event
The new legislative emphasis on data centres in Norway is a response to the growing worries about Bitcoin mining. These worries grew after 10x Research issued a warning, stating that Bitcoin miners would lose up to $5 billion with the impending halving event.
Given that the halving of Bitcoin is set to occur on April 20, 10x Research Head of Research Markus Thielen speculates that an upward trajectory in the cryptocurrency markets may not occur until October 2024.
On the other hand, Coincodex forecasts that Bitcoin may see a slight decline around one month following the 2024 halving, reflecting an optimistic outlook for the market both before and after the halving. But then there would be a 14-month rise that would end in August 2025 with a new all-time high of almost $179,000.
