Kazakhstan: Mining data centers blamed for power deficit in Kazakhstan

In recent years, Kazakhstan has become a hotspot for mining data centers, with the country becoming the second-largest producer of Bitcoin; however, alongside this developmental surge, there has also been a lack of infrastructure to support these energy-hungry coin minting facilities. Reports show that in the first three quarters of the year, these mining facilities were responsible for a 7% surge in consumption. 

As a result, a number of mining companies have been forced to shut down operations due to backlash and lack of consistent power supply, including Xive. The south of the country, in particular, is seeing a deficit. The national grid operator KEGOS, for example, has attributed responsibility to miners. 

Speaking to The Diplomat, the Ministry of Energy said in October: “The 8 percent increase in consumption is largely due to mining data centers operating in the country. The main suppliers of electricity for mining data centers are coal and gas power plants.” That said, others have argued that miners have simply been the “straw that broke the camel's back,” and further to this, that blaming the deficit purely on miners fails to take into account the larger infrastructure issues in the country.

Alan Dorjiyev, head of the Almaty-based Association of Blockchain and Data Center Industry, meanwhile, claims that so-called ‘grey-miners’ are the issue, who are operating illegally. According to Energy Minister Magzum Mirzagaliyev, those that are deemed legal miners wouldn’t find their electricity cut, although this has apparently not been the case.