Ethiopia signs data center agreement with Hong Kong company, mining may begin.
The Ethiopian government has entered into a partnership with a Hong Kong data center operator. According to reports, Bitcoin mining will be one of the activities that will be developed together on the side.
State-owned Ethiopian Investment Holdings has signed a memorandum of understanding with Data Center Services, a subsidiary of Hong Kong West Data Group. It is to develop the most advanced infrastructure for data mining and artificial intelligence training in Ethiopia.
Kal Kasa, CEO of Hashlabs Mining Ethiopia, said on X-Post:
“Ethiopia's government will mine Bitcoin [sic] Cooperation with data center services.
Indonesia's Hashlabs Mining has been approved to mine in Ethiopia since 2022.
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Ethiopian Investment Holdings AD does not support crypto mining. Bloomberg In a report released on February 7, the Ethiopian government created a sandbox for licensing “cryptographic products”.
Bitcoin (BTC) mining in Ethiopia is controversial, Bloomberg continued. The new Grand Ethiopian Renaissance Dam across the tributaries of the Blue Nile River, although still only partially operational, has given Ethiopia the second lowest electricity price in the world. The controversy stems from the fact that half of the country's population lacks electricity in their homes.
It's official!
The Government of Ethiopia is a subsidiary of West Data Group, Data Center Services Pvt.
The collaboration will be the goal of a $250 million data mining project in Ethiopia pic.twitter.com/2YfQ3QbUEO
— Kal Kassa (@KalKassa) February 15, 2024
According to another report, there are 21 crypto miners in Ethiopia, 19 of which are Chinese. Crypto mining, like crypto trading, is banned in China, although it still continues.
Bitcoin miners have had a lobby in Ethiopia supported by groups like Project Mano and Bitcoin Beer. Ethiopia collaborates with Cardano Blockchain Input Output Hong Kong (IOHK) to improve its education system.
West Data Group is a blockchain-powered fintech that established its first data center in Kentucky in 2017. It also has centers in Texas, Kazakhstan, Angola and Kenya. According to the company website, “Starting in 2021, we have changed the location [the company’s] Strategic focus on Bitcoin mining, digital currency investment and trading.
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