Ethiopia Cuts Power to Bitcoin Miners Amid Hydropower Shortages
Bitcoin miners in Ethiopia are facing fresh challenges due to a severe power crisis caused by El Niño-driven hydropower shortages. The country's main hydroelectric reservoirs have seen a 20% decrease in water inflows, prompting authorities to restrict power supply to high-consumption sectors, including Bitcoin mining.
The reduction in power supply has resulted in a 23% decrease in the energy available to Bitcoin miners, who accounted for nearly one-third of Ethiopian Electric Power's revenue last year. The company will assess monthly conditions to determine future supply levels, with more cuts likely due to El Niño.
Stakeholders are being forced to think outside the box to survive the incoming restrictions, with some considering a pivot to Artificial Intelligence (AI) computing as a lifeline for data centers. This move is seen as a negative signal for short-term adoption and market pressure.