Following concerns about greenhouse emissions related to Bitcoin mining, Norway has recently enacted new legislation about data centers.
The new legislation will require official registration of all national data centers. This registration will encompass particulars regarding the proprietors and leaders of the centers and the digital services they provide. Norway shall mark the inaugural European country in the establishment of said framework.
Norway’s energy minister, Terje Aasland, stated that the government aims to provide politicians with a more comprehensive understanding of data centers in their municipalities through the new legislation. This, in turn, will give a more solid foundation for approving or rejecting such operations.
“The purpose is to regulate the industry in such a way that we can close the door for the projects we do not want”
The decision may subject Bitcoin miners in the country to additional scrutiny, in addition to the forthcoming Bitcoin halving, which will halve the rewards for block issuance and threaten the miners’ profitability.
In Norway, the cryptocurrency mining industry has been mainly unregulated, according to Aasland:
“[Crypto mining] is linked with large greenhouse gas emissions, and is an example of a type of business we do not want in Norway.”
The minister further stated that enterprises seeking inexpensive energy from the nation do not pique their interest.
Several Bitcoin mining companies are presently operational in the most affordable region of Norway, which is northern Norway.
Local news outlet Dagsavisen reported 2023 that cryptocurrency mining operations in northern Norway consume almost as much electricity as in the Lofoten district.
However, according to Aasland, Bitcoin mining companies must be more attractive in the nation. The minister expressed his approval of data centers that serve societally advantageous functions, such as storage server centers, which he described as an integral component of the Norwegian social structure.
The government is still determining the number of Bitcoin mining companies in the country. Still, the new legislation will provide more information that will be used to advance Norway’s digitalization plan, according to the minister of public governance and digitalization, Karianne Tung.
Miners of Bitcoin are already facing increased strain in anticipation of the forthcoming halving this week. In the months following the halving, Bitcoin miners may liquidate $5 billion worth of BTC, according to calculations by Markus Thielen, director of Research at 10x Research.
