Norway to Introduce New Data Centre Law Targeting Cryptocurrency Mining

Norway to Introduce New Data Centre Law Targeting Cryptocurrency Mining

Authorities in Norway have announced their plans to implement a new data centre law aimed at regulating operations within these facilities, with a specific focus on cryptocurrency mining activities. The proposed legislation will require data centre operators to register and disclose detailed information about their operations, including management details and services offered.

Energy Minister Terje Aasland highlighted concerns over the significant greenhouse gas emissions associated with cryptocurrency mining as a key reason for wanting to restrict such operations in Norway. The government aims to host ‘serious actors’ that contribute positively to society, rather than those solely seeking cheap energy.

While the focus is on filtering out cryptocurrency mining, Norway recognizes the importance of the broader data centre industry. The Digitalisation Minister emphasized the need for stricter controls over the sector, stating that the government must be discerning about which operators are allowed to operate within the country.

This move by Norway follows previous efforts to address cryptocurrency mining within its borders, including discussions around implementing bans and reconsidering tax incentives for data centres involved in such activities in 2021.

Cryptocurrency mining uses specialized computing resources to add blocks to a proof-of-work blockchain, according to britannica.com. However, it faces criticism due to its significant electricity consumption, costs associated with acquiring specialized hardware, environmental impact, technical complexity, diminishing profitability, tax reporting challenges, and security vulnerabilities.

The introduction of the new data centre law in Norway reflects the government’s commitment to regulating the industry and promoting sustainable practices within the sector. Stay tuned for further updates on this developing story.