The Norwegian government is passing a law regulating data centers to prevent energy-intensive cryptocurrency mining.
The law, which will regulate the data center industry for the first time, requires operators to register with local regulators. According to local news outlet VG, the announcement was made by Digitalization Minister Karianne Tung and Energy Minister Terje Aasland.
Tung stated that the aim of the law is to regulate the sector in a way that unwanted projects can be prevented. Both Tung and Aasland agree that they do not want cryptocurrency mining in the country. Aasland pointed out that crypto mining is associated with large greenhouse gas emissions and is a type of business they do not want in Norway.
Crypto miners are setting up operations in countries such as Norway and Sweden, where renewable power sources such as hydroelectric power are abundant.
Norway, which is not part of the European Union, supported neighboring Sweden's proposal several years ago to ban crypto mining due to energy concerns. This has led some EU parliamentary groups to make an unsuccessful attempt to restrict Bitcoin's energy-intensive proof-of-work consensus mechanism within the EU, with a measure included in the landmark crypto law known as Markets in Crypto-Assets (MiCA).
Last year, Sweden increased taxes for data centers in an attempt to deter crypto miners. Tung stated that the data center industry has never been regulated until now, but with the new law, it will be possible to inspect and control data centers.
*This is not investment advice.