The country has accepted some of the miners migrating from Kazakhstan, but there are not enough resources for everyone

​Miners leave Kazakhstan due to power shortages

25.11.2021 - 11:55

312

1 min

What’s new? The cryptocurrency mining company Xive has shut down a data center with 2500 devices in South Kazakhstan due to a lack of the necessary amount of electricity from the national grid. This was announced on the Twitter account by the company's co-founder Didar Bekbau.

How did events develop? The crypto mining companies Xive and Enegix discovered electricity problems in September because of rationing by KEGOC, the national grid operator. Xive is preparing a new site for 2500 machines, but according to Beckbau, mining in southern Kazakhstan is no longer possible. Other miners in the region are also looking for hosting sites to move their machines, but there are few options for migration in the country. Some have found hosting for data centers in Russia and the USA.

What did the authorities do? In October, the Ministry of Energy issued a regulation stating that new mining farms will be limited to 100 MW. Later, the Ministry of Energy stated that it would not restrict the power supply to legitimate companies unless it endangered the national power grid. The government wants to encourage cryptocurrency miners to switch to renewable energy sources.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy