Georgian Mining Farms Significantly Increase Power Usage
Georgia is experiencing a substantial surge in cryptocurrency mining, largely attributed to affordable electricity prices and the legalization of the industry. Official statistics indicate that mining enterprises are now consuming approximately 5% of the total electricity generated within the South Caucasian nation.
The growth in cryptocurrency mining is evident from a significant increase in electricity consumption within the sector, as reported by local media. Power usage by large data processing centers is escalating rapidly, according to a report from the Business Georgia portal. These computing facilities, primarily situated in the Tbilisi and Kutaisi free economic zones, are predominantly involved in the minting of digital currencies.
The output from companies engaged in crypto activities has reportedly tripled in the past year, as revealed by the economic news outlet. Between January and November 2025, these operations consumed 675 million kWh of electricity, representing 5% of the country's total consumption, according to figures from the Georgian National Energy and Water Supply Regulatory Commission (GNERC).
The regional Russian-language online newspaper Vesti Kavkaza estimates this figure to be nearly 80% more than the power utilized in the preceding year. Analysts attribute this upward trend to several key factors. These include the increase in the value of digital assets throughout 2025, relatively low electricity rates in Georgia, and the Georgian government's proactive efforts to legalize and regulate the cryptocurrency mining sector.
The price of Bitcoin (BTC), the cryptocurrency with the largest market capitalization, reached an all-time high exceeding $126,000 in October. Concurrently, Georgia's cost-effective energy and supportive regulatory environment attracted the mining giant Bitfury to establish operations within the country.
Leading Electricity Consumers Among Mining Operations
AITEC Solution stands out as the largest electricity consumer among data center operators, having utilized 403 million kWh of electricity. This company operates the Gldani facility in Tbilisi, the Georgian capital, which was previously used by Bitfury for mining operations.
Texprint Corporation, based in the Kutaisi Free Economic Zone, is the second-highest electricity consumer, having used 135 million kWh between January and September. TFZ Service LLC ranks third with 104 million kWh. While this company is not directly involved in cryptocurrency mining, it plays a crucial role in supplying electricity to mining firms operating within the Tbilisi Free Industrial Zone.
The top five list is rounded out by ITLab, which consumed 24.6 million kWh, and Data Hub, which accounted for 7.2 million kWh, according to details provided by Business Georgia.
Regional Challenges with Growing Mining Power Consumption
Georgia permits both companies and individuals to engage in cryptocurrency mining. The country has maintained a favorable tax regime for such activities since 2019, though legislation enacted in 2023 has introduced increased oversight within the sector.
Georgia primarily generates its electricity through hydropower, with hydroelectric stations accounting for up to 80% of the nation's domestically produced energy. Despite this, the country is facing challenges in meeting the growing demand.
The broader cryptocurrency mining boom across the former Soviet space has presented significant challenges for local and national authorities in neighboring countries, with rising electricity consumption leading to energy shortages. For instance, the Russian Federation, which legalized cryptocurrency mining in late 2024, has subsequently banned the business in approximately a dozen of its regions.
Russia intends to penalize illegal mining activities, often involving the use of stolen power, through substantial fines and even imprisonment. A draft law proposing these new measures has recently been submitted to parliament.
Similarly, Tajikistan has threatened rogue crypto miners with comparable penalties, enacting amendments approved by its legislature late last year. In November, Kyrgyzstan took the decisive step of shutting down all crypto mining farms operating within its territory, citing growing power deficits during the cold winter months as the primary reason for this action.
Kazakhstan, on the other hand, has largely managed to mitigate these issues by implementing higher electricity rates for cryptocurrency farms and introducing stricter regulations for the industry.