According to Coingtelegraph: The Ethiopian government, through its state-owned Ethiopian Investment Holdings, has inked a Memorandum of Understanding (MoU) with Hong Kong's Data Center Service, a subsidiary of the West Data Group. The partnership paves the way for a $250-million worth of project that aims to establish advanced infrastructure for data mining and artificial intelligence training operations in Ethiopia. There are indications that Bitcoin mining will be among the potential areas of collaboration.
Locally based Hashlabs Mining's Ethiopia CEO, Kal Kassa, suggested that the Ethiopian government's partnership with Data Center Service would involve Bitcoin mining. Although crypto trading remains prohibited in the country, mining has been authorized since 2022.
However, the deal is not devoid of controversies. With Ethiopia boasting the world's second-lowest electricity rates, thanks to its new Grand Ethiopian Renaissance Dam, questions have been raised about Bitcoin mining while half of the country's population lacks electricity access.
Presently, there are 21 active crypto miners in Ethiopia, with 19 of them being Chinese-operated. Cryptocurrency mining and trading are banned in China, although illicit activities persist.
The West Data Group is known for its blockchain-centric fintech operations. It set up its first data center in Kentucky in 2017, before expanding with centers in Texas, Kazakhstan, Angola, and Kenya. Since 2021, the company shifted its strategic focus toward Bitcoin mining, along with digital currency investment and trading.
