Mining data centres in Kazakhstan resume operations as internet access is restored

Practically all Kazakhstan’s legal mining data-centres have resumed operations, ForkLog reported, citing Alan Dorzhiev, head of the National Association of Blockchain and Data-Centre Industry of Kazakhstan.

He said that the internet situation in the country had significantly improved—connections were becoming available in many regions. In this context, many data-centres involved in cryptocurrency mining are once again operating normally, Dorzhiev noted.

According to NetBlocks, on January 10 internet connectivity in Kazakhstan was substantially restored, but problems later returned.

Representatives from NetBlocks said that the internet restoration in Kazakhstan is “limited, unpredictable and does not meet the stability requirements needed for mining cryptocurrencies”.

Experts say that residents in many cities still have trouble getting online.

Internet shutdowns in Kazakhstan began in early January amid a wave of protests.

As a result, last week Bitcoin mining hash rate in Kazakhstan fell by 12%. On January 10, this figure dropped to 2.2%, according to CoinDesk.

As of writing, the aggregate computational power of the network stood at 173 EH/s, according to BTC.com.

As reported, amid tightening rhetoric by Chinese authorities toward cryptocurrencies, many miners migrated to Kazakhstan.

In October, according to the Cambridge Centre for Alternative Finance, the country became one of the world leaders in Bitcoin hash rate.

In autumn 2021, Kazakh authorities warned of rising electricity consumption and possible shortages, and proposed to limit the energy consumption of mining data-centres.

As a result, some miners began leaving the country in search of other jurisdictions.

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