Laos to End Crypto Mining Power Supply by 2026

Laos plans to end electricity supply to crypto mining farms by Q1 2026, reallocating power to industries like AI and EV manufacturing, citing greater economic benefit.

This decision reflects a shift in economic priorities, potentially reducing Southeast Asia’s crypto hash rate while bolstering industrial growth, aiming for better economic impacts.

Laos’ Power Shift: Crypto Mining Halt by 2026

Laos’ government, led by Deputy Energy Minister Chanthaboun Soukaloun, announced plans to discontinue power supply to crypto mining farms by early 2026. This decision aims to redirect energy towards industries such as AI data centers and metal refining, which are deemed more beneficial to the economic growth of the country.

Chanthaboun Soukaloun stated, “Crypto doesn’t create value compared to supplying it to industrial or commercial consumers. We proposed to the government in 2021 to supply to crypto mining due to the oversupply of electricity domestically.” This highlights the intention behind this policy shift, aligning with the need to optimize resource use for sectors promising broader economic impact.

Crypto mining farms in Laos are currently utilizing about 150 megawatts, a substantial decrease of 70% since their peak utilization in 2021 and 2022. The planned reallocation will focus on supporting local industries that offer greater domestic economic benefits.

Economic Implications: Resource Allocation to Growth Sectors

Did you know? Laos initially increased power to crypto mining in 2021 due to an electricity surplus, yet this year it ranks among countries significantly reducing crypto hashrate contribution.

According to CoinMarketCap, Bitcoin (BTC) is trading at $108,492.55 with a market cap of $2.16 trillion and a dominance of 58.88%. Its 24-hour trading volume experienced a 22.85% change, now at approximately $86.90 billion. Recent price shifts include a 2.64% decline in 24 hours and a 10.60% drop over seven days.

Research insights suggest that shifting power resources away from crypto will likely enhance sectors like AI and electric vehicles in Laos, potentially fostering robust economic frameworks. Additionally, the global crypto mining landscape may witness minor hashrate distribution adjustments without significant market disruption.