The Russian government will prohibit cryptocurrency mining activities in data centers to prioritize the development of big data processing capabilities and artificial intelligence.
The new law prohibiting cryptocurrency mining at data centers was established by the order of President Putin to concentrate resources, reduce electricity consumption, and create a favorable environment for the AI industry to develop.
MAIN CONTENT
The law prohibiting cryptocurrency mining at data centers was added to the draft proposed by the Russian government.
The state prioritizes supporting the development of data centers to enhance big data and AI processing capabilities with various incentive policies.
The new regulations could negatively impact the cryptocurrency mining industry and businesses operating integrated mining equipment data centers.
How exactly will Russia prohibit cryptocurrency mining at data centers?
The law prohibiting cryptocurrency mining in data centers is based on the guiding decree of Deputy Prime Minister Dmitry Grigorenko, under which data centers (DPC) are redefined as communication facilities and registered with the Russian Ministry of Digital Development, Communications and Mass Media.
Through this registration, data centers are not allowed to install or operate cryptocurrency mining equipment to prevent the use of electricity incentives designated for AI and big data processing – fields that are considered key priorities to enhance Russia's competitiveness.
"Transparent and clear regulations are the first step. We will legalize the definition of data centers as communication facilities rather than just server rooms. Clear rules will lay the foundation for additional support measures."
Statement from a representative of the Russian Government Office, 2025
Why is Russia taking steps to restrict cryptocurrency mining at data centers?
President Vladimir Putin has called for the promotion of data center development since 2020 to serve digital transformation and AI. Meanwhile, the cryptocurrency mining industry was issued a separate law in 2024 but is restricted in many territories, especially those using cheap electricity for mining.
The prohibition of mining in data centers stems from the fact that areas like Irkutsk experience electricity shortages due to cryptocurrency whales using subsidized electricity for rampant mining, putting pressure on the power grid and the local economy.
"Previously, we were happy that some regions had surplus electricity. But when the whales mined heavily, governors reflected this to me… We had to make certain decisions."
President Vladimir Putin, 2025
What impact could the new regulations have on the mining industry and data center businesses?
The law prohibiting cryptocurrency mining at data centers may lead to financial losses for many operators of data centers with integrated mining equipment, such as BitRiver – the largest data center in the Irkutsk region.
Digitalization and blockchain expert Oleg Ogienko assesses that this is a move that complicates not only mining but also data center businesses, as most of them have combined mining operations to increase infrastructure utilization.
How does the new law protect the sustainable development of AI and big data?
The Russian state offers incentives such as cheap electricity and quick connections to the power grid for registered data centers while restricting cryptocurrency mining to ensure that electricity resources are used efficiently for digital transformation and artificial intelligence development.
This measure reinforces the goal of enhancing digital infrastructure while minimizing the risk of unreasonable energy consumption from mining activities negatively affecting the national power grid.
Frequently Asked Questions
1. Why is Russia banning cryptocurrency mining in data centers?
To prioritize electricity resources for developing data centers serving AI and big data, avoiding situations where cryptocurrency whales overload the power grid.
2. What support will data centers in Russia receive under the new law?
They receive incentives such as cheap electricity and quick connections to the power grid, helping to reduce operational costs and accelerate development.
3. How does this move affect cryptocurrency mining businesses?
It could cause significant financial losses, especially for data centers with integrated mining equipment, due to the cessation of mining activities.
4. How long will the ban be applicable?
Some regions have imposed bans for six years to control electricity usage and ensure sustainable development.
5. Who is responsible for overseeing the registration of data centers?
The Russian Ministry of Digital Development, Communications and Mass Media is the managing body that maintains this registry.
Source: https://tintucbitcoin.com/nga-cam-dao-bitcoin-uu-tien-ai/
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