- Trending
- Comments
- Latest
Cryptocurrency mining operations in Georgia now consume approximately 5% of the country’s total electricity generation, nearly 675 million kilowatt-hours between January and November, an 80% surge that’s made the South Caucasus nation a rare regional haven for the industry as neighboring countries impose bans and restrictions.
The surge highlights Georgia’s growing role as a regional hub for industrial-scale crypto mining at a time when neighboring countries are tightening restrictions or outright banning the activity.
Local outlet Business Georgia reported that electricity usage by large computing facilities—many of them Georgia crypto mining farms—has risen sharply over the past year. Most of these operations are concentrated in the Tbilisi and Kutaisi free economic zones, where favorable tax treatment and infrastructure access have long attracted foreign investment.
According to data from the Georgian National Energy and Water Supply Regulatory Commission (GNERC), mining firms consumed approximately 675 million kilowatt-hours of electricity between January and November 2025. That figure represents nearly an 80% increase compared with the same period a year earlier, based on estimates published by regional newspaper Vesti Kavkaza.
In parallel, the output of companies engaged in crypto-related activity reportedly tripled over the course of 2025, reflecting both expanded capacity and stronger digital asset prices.
Analysts say rising valuations, particularly Bitcoin’s rally to an all-time high above $126,000 in October, significantly improved mining economics and reinforced the appeal of Georgia crypto mining farms.
Several structural advantages continue to set Georgia crypto mining farms apart. Electricity prices in Georgia remain among the lowest in the region, while up to 80% of domestically generated power comes from hydroelectric sources, reducing exposure to volatile fossil fuel markets.
The government has also maintained a relatively welcoming regulatory environment. Cryptocurrency mining was formally legalized in 2019, and while legislation adopted in 2023 increased oversight and reporting requirements, it stopped short of imposing restrictive licensing caps or punitive tariffs.
“These policies created predictability for investors,” said Irakli Gvenetadze, an energy analyst based in Tbilisi. “Compared to neighboring states, Georgia crypto mining farms operate in a far more stable legal and cost environment.”
That stability previously attracted major industry players such as Bitfury, which established operations in Georgia during earlier mining booms.
GNERC data shows that a small group of companies accounts for the bulk of electricity consumed by Georgia crypto mining farms.
AITEC Solution leads the list, having used 403 million kWh of electricity. The firm operates the Gldani facility in Tbilisi, a site previously used by Bitfury during its Georgian expansion.
Texprint Corporation ranks second, consuming 135 million kWh between January and September at its facility in the Kutaisi Free Economic Zone. TFZ Service LLC follows with 104 million kWh, primarily supplying electricity to miners operating within the Tbilisi Free Industrial Zone.
Two smaller players—ITLab and Data Hub—complete the top five, using 24.6 million kWh and 7.2 million kWh respectively, according to Business Georgia.
Together, these firms illustrate how Georgia crypto mining farms have evolved from niche operations into large-scale industrial electricity consumers.
While Georgia has so far managed the growth of Georgia crypto mining farms without major disruptions, the wider region offers cautionary examples.
Across the former Soviet space, surging mining activity has strained aging power grids and triggered political backlash. Russia legalized crypto mining in late 2024 but has since banned it in around a dozen regions, citing electricity shortages. Authorities are now pursuing penalties for illegal mining, including heavy fines and prison sentences.
Tajikistan has threatened rogue miners with similar punishment, while Kyrgyzstan shut down all crypto mining farms in November, pointing to winter power deficits as justification.
Kazakhstan, once a global mining hotspot, opted for a different approach—introducing higher electricity tariffs and tighter regulation rather than outright bans. That policy shift has significantly reduced mining activity while stabilizing the grid.
For now, Georgia appears committed to balancing growth with energy security. Officials have not signaled plans to curb Georgia crypto mining farms, but regulators continue monitoring electricity demand as mining expands.
“Georgia benefits economically from this sector, but the scale now requires careful planning,” said a senior energy official familiar with GNERC data. “If demand accelerates too fast, infrastructure investment will be essential.”
As long as power remains affordable and regulations predictable, Georgia crypto mining farms are likely to keep expanding. Whether that growth remains sustainable will depend on electricity supply resilience, global crypto prices, and policymakers’ ability to avoid the energy crises seen elsewhere in the region.
For now, Georgia’s mining boom stands out as a rare example of a country successfully capitalizing on crypto’s infrastructure demands—while others struggle to contain them.
