Georgia has recently emerged as one of the fastest-growing crypto mining hubs in the region. The main drivers behind this boom are low electricity prices, a relatively friendly regulatory environment, and rising interest in digital assets. According to official data, crypto miners now consume roughly 5% of the country’s total electricity production.

Miners’ Power Consumption Nearly Doubles

Local media report a record surge in electricity usage by crypto-focused data centers. Business Georgia notes that large-scale computing facilities—primarily located in the free economic zones of Tbilisi and Kutaisi—have sharply increased their power consumption.

Companies engaged in crypto mining tripled their output in 2025, a development directly reflected in higher energy demand. Data from Georgia’s National Energy and Water Supply Regulatory Commission (GNERC) shows that between January and November 2025, these businesses consumed 675 million kWh, accounting for about 5% of the nation’s total electricity use.

Regional estimates suggest this represents an almost 80% year-over-year increase, underscoring the extraordinary pace of expansion in the sector.

Why Georgia Attracts Crypto Miners

Analysts attribute the rapid growth to several key factors:

🔹 Strong appreciation of digital assets in 2025

🔹 Low and stable electricity prices

🔹 Legalization and clearer regulation of mining

🔹 A high share of renewable energy sources

Bitcoin reached a new all-time high above $126,000 in October, significantly improving mining profitability. Combined with cheap power and regulatory clarity, this environment has attracted major players, including mining giant Bitfury, which has long operated facilities in Georgia.

Who Uses the Most Electricity

The largest power consumer among data centers is AITEC Solution, which used 403 million kWh at its Gldani facility in Tbilisi. The site previously hosted Bitfury operations.

Second place goes to Texprint Corporation, operating in the Kutaisi Free Economic Zone, with 135 million kWh consumed. Third is TFZ Service LLC at 104 million kWh. While TFZ Service does not mine crypto directly, it supplies electricity to mining firms operating in Tbilisi’s industrial zone.

Rounding out the top five are ITLab (24.6 million kWh) and Data Hub (7.2 million kWh).

Rising Energy Demand Creates Regional Pressure

Georgia has maintained a favorable tax regime for crypto activities since 2019, allowing both companies and individuals to mine. Legislation adopted in 2023 increased oversight, but the country has so far managed rising demand—largely because up to 80% of domestic electricity production comes from hydropower.

Elsewhere in the former Soviet region, however, rapid mining growth has led to energy shortages, prompting tougher government responses:

🔹 Russia legalized mining in late 2024 but has since banned it in about a dozen regions

🔹 Tajikistan has threatened heavy fines and prison sentences for illegal miners

🔹 Kyrgyzstan shut down all mining farms in November, citing winter energy deficits

🔹 Kazakhstan stabilized the situation by raising electricity tariffs and tightening regulations

Georgia Still Benefits from a Delicate Balance

While many neighboring countries struggle with the energy impact of crypto mining, Georgia has so far balanced economic gains, energy stability, and regulatory oversight. Whether this model can hold as the sector continues to expand remains an open question—or whether Georgia will eventually face the same challenges confronting its regional peers.

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