By late 2024, Kazakhstan’s power grid was on the brink. Cities like Almaty and Nur-Sultan were rolling blackouts every other week. In smaller towns, people woke up to no heat in winter because the grid couldn’t handle the load. The cause? Not just aging wires or bad planning - it was crypto mining.
How Crypto Mining Crushed the Grid
Kazakhstan became the second-largest Bitcoin mining hub in the world after China banned mining in 2021. Thousands of mining farms popped up overnight - warehouses full of ASIC rigs, humming 24/7, sucking electricity like industrial smelters. By 2023, crypto mining was using nearly 6.5% of the country’s total electricity. That’s more than all the homes in Astana combined. The grid wasn’t built for this. Most of Kazakhstan’s power plants are over 40 years old. Over one-third of them are 70-90% worn out. Transmission lines, some dating back to Soviet times, couldn’t handle the sudden surge. In some regions, technical losses hit 18% - meaning for every 100 kilowatts sent out, 18 just vanished into thin air. In developed countries, losses stay under 10%. Kazakhstan’s grid was leaking power like a sieve. By early 2024, KEGOC - the national grid operator - reported that crypto mining alone was consuming over 3,000 MW of power. That’s the equivalent of 1.5 million homes. And it wasn’t just Bitcoin. Ethereum, Dogecoin, and dozens of smaller coins were being mined across the country, mostly in unregulated, off-grid facilities.The Breaking Point
In November 2024, the government hit a wall. Power shortages forced hospitals to switch to diesel generators. Schools closed for days. Factories ran at half capacity. The Ministry of Energy warned that without immediate action, the entire country could face rolling blackouts lasting up to 12 hours a day by summer 2025. The tipping point came when a major substation in the West Kazakhstan region failed. It wasn’t due to snow or ice. It was because a nearby mining farm pulled 120 MW in a single hour - more than the entire town of Oral normally uses. The overload caused a cascade failure. Power went out across three provinces. People died in the cold. That’s when the government acted.The Crypto Mining Ban: What Happened
On January 1, 2025, Kazakhstan officially banned all cryptocurrency mining operations. Not just new ones - all of them. The ban applied to both commercial farms and individual miners using residential power. No exceptions. The law gave mining operators 90 days to shut down. They had to either export their equipment out of the country or dismantle it. The government didn’t offer compensation. Many miners simply left. Some moved to Russia, Georgia, or the U.S. Others tried to hide their rigs under false business licenses - but the state started using AI-powered grid monitoring to detect abnormal power spikes. If your home’s usage jumped 300% overnight, you got a visit. By April 2025, over 95% of mining rigs were offline. The government reported a 22% drop in national electricity demand within three months. That’s 5,000 MW freed up - enough to power all of Kazakhstan’s public schools and hospitals without strain.
What’s Left of the Grid
Even with mining gone, the grid is still broken. Transmission losses remain above 15% in many regions. Aging transformers keep failing. Power plants are still running at 80% capacity - but now they’re trying to supply real people, not machines. The Ministry of Energy admitted in a 2025 report that without the ban, the country would have faced a full-scale blackout by 2026. The mining industry had been a hidden parasite, feeding off infrastructure that wasn’t designed to support it. Kazakhstan now has a chance to rebuild. The government is fast-tracking $2.6 billion in renewable energy projects - three 1 GW wind farms, solar parks in the south, and a new 2,000 MW North-South HVDC transmission line. But progress is slow. The same bureaucracy that ignored mining for years now struggles to move money and permits.Who Pays the Price?
The ban didn’t help everyone equally. Small businesses that used mining rigs as a side income lost everything. Farmers in the south who rented out barns to miners now have empty buildings and unpaid bills. Some miners were honest - they paid taxes, used legal power, and reinvested profits into local jobs. They got wiped out too. Meanwhile, the average citizen saw electricity prices drop 15% after the ban. Heating costs fell. Factories reopened. But the real winners? Renewable energy developers. With mining gone, the grid is finally stable enough to integrate wind and solar. By 2026, renewables are expected to overtake coal for the first time in Kazakhstan’s history.
What This Means for the Rest of the World
Kazakhstan’s story isn’t unique. Texas, Sweden, and even parts of Canada have seen mining spikes strain local grids. But Kazakhstan was the first country to go all-in on a ban - and it worked. Other nations are watching. Ukraine is considering a similar move. Nigeria is debating limits on mining power usage. Even the U.S. is starting to look at state-level restrictions in states like New York and Washington, where mining farms are pushing up residential rates. The lesson? Crypto mining isn’t just a tech issue. It’s an infrastructure issue. And if you don’t have a modern grid, you can’t afford to mine.Can Kazakhstan Recover?
The signs are mixed. On one hand, the grid is breathing again. Power outages have dropped by 60% since the ban. Renewable projects are moving forward. The government is finally investing in smart grid tech - sensors, automated load balancing, AI-driven demand forecasting. On the other hand, corruption is still a problem. Some mining rigs were secretly kept running. Others were rebranded as data centers. The government has launched a hotline for whistleblowers - and already received over 1,200 tips. The real test? By 2030. If Kazakhstan doesn’t finish its transmission upgrades and renewable rollout by then, it could still face shortages. But now, at least, the path is clear.What’s Next for Crypto in Kazakhstan?
Mining is dead - but blockchain isn’t. The government is now pushing blockchain for land registry, voting, and supply chain tracking. No more energy-hungry mining. Just clean, useful tech. And for the miners? Some got lucky. A few sold their rigs before the ban and moved to countries with better power policies. Others started businesses - installing solar panels, fixing grid equipment, training technicians. The economy didn’t collapse. It just changed.Why did Kazakhstan ban crypto mining?
Kazakhstan banned crypto mining because it was consuming over 3,000 MW of electricity - nearly 6.5% of the country’s total power. The aging grid couldn’t handle the load, causing blackouts, transformer failures, and even deaths in the winter of 2024. The government acted to protect public infrastructure and prevent a nationwide blackout.
How much power did crypto mining use in Kazakhstan?
At its peak in 2024, crypto mining consumed about 3,000 megawatts (MW) of electricity - equivalent to the power used by 1.5 million homes. That was 6.5% of Kazakhstan’s total electricity production and more than what the entire capital city of Nur-Sultan used.
Did the ban fix the energy grid?
It helped - but didn’t fix everything. After the ban, national electricity demand dropped by 22%, and blackouts fell by 60%. But the grid is still outdated, with transmission losses above 15% in many areas. Real recovery depends on completing new transmission lines and renewable projects by 2030.
Are there still crypto miners in Kazakhstan?
Very few. By mid-2025, over 95% of mining rigs were shut down or removed. The government uses AI to detect abnormal power spikes. Those caught hiding rigs face heavy fines and equipment seizure. Some miners tried rebranding as data centers, but inspections have cracked down on those too.
What’s replacing crypto mining in Kazakhstan’s economy?
Renewable energy projects are taking over. The government is building three 1 GW wind farms and expanding solar power. Blockchain tech is being used for land records and public services - but without mining. Former miners are now working in solar installation, grid repair, and energy consulting.
Could this happen in other countries?
Yes. Countries with weak grids - like Nigeria, Argentina, and parts of the U.S. - are already seeing mining strain power systems. Kazakhstan proved that if mining uses more electricity than homes, the government will act. It’s not about banning crypto - it’s about protecting the grid.
Anthony Ventresque
January 13, 2026 AT 18:13Finally, someone did the right thing. I’ve been saying for years that crypto mining is just digital coal mining-except worse because it doesn’t even make anything tangible. Kazakhstan didn’t ban crypto, they banned energy theft. And honestly? They’re lucky it wasn’t worse. The fact that they’re now investing in wind and solar? That’s the real win.
Hope other countries take notes. We’re already seeing power bills spike in Texas because of offshore mining farms. This isn’t a tech issue-it’s a public utility crisis.