By
Bhushan Akolkar
April 15th, 2024
Norway may not have shown crypto mining firms an exit door yet, the new legislation is expected to do so.
Henceforth, Norway is set to keep a close eye on the operations of data centers within its borders. This follows after the country recently announced its decision to put forward new legislation that will regulate its data center industry.
As detailed in a local news report, Digitalization Minister Karianne Tung confirms that this is the country’s first attempt at scrutinizing the crypto mining industry. However, it is also the first time any European country is putting forward such a framework, Tung added.
According to the report, the new legislation will require that all data centers in the country are duly registered. That is after they must have filed details, including information about the owners, and top managers of these centers, as well as the type of services they offer.
According to officials, the new legislation is not exactly an attempt to stifle innovation. Rather, it is a way for the country to determine what projects align with its infrastructural ambitions or not. Tung said partly:
“The purpose is to regulate the industry in such a way that we can close the door on the projects we do not want.”
Norway’s Energy Minister Terje Aasland also shared the same sentiment. He said that the new legislation allows the country to get a good overview of which services are offered in these data centers. “It is the socially useful data centers that we want. They are important for infrastructure,” he added.
Norway Data Centre Law: Trouble for Bitcoin Miners?
From the statements of Tung and Aasland, it might be safe to conclude that Norway is set to shut the door on Bitcoin mining activities within its shores. Aasland stated:
“Cryptocurrency… is an example of a type of business we do not want in Norway.”
Presently, Northern Norway is home to several Bitcoin mining firms, and that is all thanks to its relatively cheap electricity. In 2023, a local media outlet, Dagsavisen, reported that Kryptofabrikken used almost as much electricity as the entire Lofoten district.
Norway may not have shown crypto mining firms an exit door yet, but the new legislation is expected to do so. By making it mandatory for data centers to report their businesses, local politicians in Norwegian municipalities now have the authority to say yes or no to the establishment of a center in their municipalities.
Moreover, the recent statements from top government officials such as Tung and Aasland may already signal the stance of Norway. That is as it pertains to crypto mining.
Meanwhile, Aasland also did a bit of clarification on Norway’s data center law. He said that the country is open to working with data centers that are beneficial to its social structure. For example, centers that operate as storage servers.
So, essentially, the data center industry is an industry that Norway greatly desires and needs. However, having gone unregulated for a long time, the government now wants to exercise more control over it.