Demand for electricity from data centers for cryptocurrency mining in Ethiopia is expected to reach 30% of the country’s total consumption by 2025, amounting to 8 TWh. This is according to a report by the relevant ministry.
Amid growing demand from miners, authorities have planned a tariff reform. Over the next four years, electricity prices for businesses will rise by 400%—from 2.12 birr to nearly 10 birr (approximately $0.015 to $0.075) per kWh by 2028.
The report’s authors believe that the tariff increase is likely to reduce incentives for investment in mining within the country. The new demand places additional strain on the power system, which is already experiencing significant issues.
About 25% of the country’s generating capacity is idle due to a shortage of imported spare parts for repairs. Large industrial consumers face an average of 39 power outages per month, totaling 21 hours.
Meanwhile, all electricity in Ethiopia’s national grid is generated from renewable sources, primarily through hydropower. The key facility is the GERD.
Progress in electrifying the population remains slow. Only 22% of households have legal connections to the grid. At the same time, the government is encouraging a shift to electric vehicles, which are expected to account for 28% of the country’s vehicle fleet by 2030.
Authorities also plan to attract private investors for the construction of solar and wind power plants. In February 2025, the first auctions for independent producers were announced, with a total capacity of 225 MW.
Africa is becoming a hub for outsourcing business processes due to low labor costs, a young English-speaking workforce, and government support. The industry in the country is projected to grow by 14% annually, nearly double the global rate.
Back in December 2024, The Africa Report reported that bitcoin miners account for nearly one-fifth of all electricity sales revenue in Ethiopia.