Laos plans to cut off power supply for cryptocurrency mining, aiming to use energy in more valuable industries

Laos is considering halting power supply to cryptocurrency miners in the first quarter of 2026 in an effort to shift domestic electricity to industries that contribute more to economic growth.

Attracted by cheap non-fossil energy, cryptocurrency operators have flocked to this landlocked Southeast Asian country, following a policy shift in Laos in 2021 that triggered a rapid expansion of mining activities. cryptocurrency mining refers to the process of using computer computing power to compete in solving encryption equations in order to obtain cryptocurrencies.

Chanthaboun Soukaloun, deputy minister of Energy of Laos, told Reuters on Thursday (October 16) that the government's current goal is to prioritize providing electricity for industries such as artificial intelligence data centers, metal refining and electric vehicles.

Zhan Thabun Sukaron said during his attendance at the Asayan Energy Ministers' Meeting in Kuala Lumpur that Laos has begun to reduce electricity supply to cryptocurrency miners. Currently, the electricity consumption of cryptocurrency miners is about 150 megawatts, a 70% decrease from the peak of 500 megawatts in 2021 and 2022.

Supply power to industries that contribute more to the economy

Compared with powering industrial or commercial consumers, powering cryptocurrency mining does not create value. Due to the domestic power supply surplus, we proposed to the government in 2021 to provide electricity for cryptocurrency mining. He added that the industry creates very few job opportunities and lacks supply chains that are beneficial to the economy.

Chanthabun Sukarong said that Laos initially planned to cut off power supply this year, but due to abundant rainfall which increased hydropower generation and exports to neighboring countries Thailand and Vietnam, the power supply plan was able to continue.

I think by the end of the first quarter of 2026, we might completely stop supplying power to cryptocurrency mining.

Laos is known as the "battery of Southeast Asia" due to its potential for hydropower exports, and hydropower generation plays a key role in the country's clean energy transition.

Laos exports the majority of its hydropower to independent power producers through cross-border transactions with Thailand and Vietnam. Currently, Laos is considering enhancing its bilateral export capacity to Vietnam, which is currently 8,000 megawatts.