Norway is set to introduce pioneering legislation to regulate the data center industry, a move that would make it the first European nation to do so. Digitalization Minister Karianne Tung stated that the legislation’s aim is to effectively manage the industry, allowing for the exclusion of undesirable projects. This includes explicitly ruling out support for crypto-mining operations, which was further emphasized by Minister for Energy Terje Aasland due to concerns about the associated greenhouse gas emissions. Norway’s status as Europe’s largest hydropower producer, with a majority of its electricity sourced from renewable energy, underpins the government’s stance on discouraging businesses seeking to extract cheap electricity.
The regulators anticipate that the new law will provide better insight into the number of Bitcoin mining firms operating in the country, aligning with Norway’s broader digitalization plans. The increased regulatory attention on crypto-mining coincides with a downturn in the industry’s performance, and comes at a time when the sector is preparing for the fourth Bitcoin halving.