As cryptocurrency matures as an industry, its environmental impacts are a topic of some conversation.
Of note, Norway is reportedly planning a temporary ban on "new data centres that mine cryptocurrency with the most power-intensive technology." The ban could be introduced as early as this fall, according to late-June reporting from Reuters.
"The Labour Party government has a clear intention to limit the mining of cryptocurrency in Norway as much as possible," Karianne Tung, the country's Minister for Digitalization and Public Administration, said in a statement, per the outlet. "Cryptocurrency mining is very power-intensive and generates little in the way of jobs and income for the local community."
AInvest coverage of the planned ban suggested that crypto mining has increased in Norway at least in part due to the affordable, renewable hydropower that can be accessed there. But the government is concerned that the operations don't produce enough societal benefit in return, and authorities want to "[direct] energy consumption towards industries that sustain local economies."
Industries that rely on massive data centers — such as crypto mining and artificial intelligence — can have shocking environmental footprints. They typically require large amounts of energy as well as water for cooling.
Despite promising partnerships with renewable energy projects, many cryptocurrencies still rely at least in part on dirty fuels that drive rising global temperatures. Even those that leverage huge amounts of clean energy can also still be concerning if that practice too radically limits power availability elsewhere — which is a key concern in Norway since its hydro is already used for the grid — though crypto proponents often note that it's the financial incentive crypto offers that spurs many renewable investments in the first place.
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Crypto mining centers can have impacts on the quality of life in nearby communities as well. In 2024, Texas residents filed a lawsuit against a local bitcoin mining facility over noise pollution and resulting health issues, including reports of vertigo, migraines, tinnitus, and anxiety.
Should it come to pass, the ban in Norway could help to support local communities and economies while the industry potentially considers further strategies to reduce energy use and other impacts.
Many working in crypto have recognized the challenge of making the industry more sustainable and have advocated for or taken steps to effect change.
For example, elsewhere in Texas, Mara Holdings acquired a wind farm paired with last-generation ASIC mining rigs earlier this year to operate a much less environmentally damaging bitcoin operation. And in 2024, University of Salford finance lecturer Jean Bessala wrote for The Conversation about how companies like Mara have been working on energy-efficient cooling systems and heat recycling with the potential to turn energy back around to communities.
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