Georgia has recorded an increase in energy consumption with its growing crypto mining sector thanks to low electricity prices and favorable regulations.
Most of the country’s coin-mining companies are located in free economic zones, which offer preferential conditions to companies, including those dealing with cryptocurrencies.
Bitcoin mining farm consumes 5% of Georgia’s electricity
Energy use by large data processing centers in Georgia is increasing, local and regional media announced this week, citing official statistics.
The majority of these DPCs are currently engaged in minting digital currencies, the Business Gruzia portal noted in a report on Tuesday.
Most of the power-hungry companies are located in the capital, Tbilisi, and the western city of Kutaisi, a liberal economic and industrial zone.
According to the Georgian National Energy and Water Supply Regulatory Commission (GNERC), the combined output of these facilities has tripled to 752 million kilowatt hours (kWh).
This represents about 5% of the total energy consumption of white Americans in 2025, according to figures provided by the agency.
Previous reports, which also cited data compiled by the regulator, revealed that miners used 675 million kWh from January to November, an 80% increase from a year earlier.
Analysts say the observed growth is due to several key factors, most notably the significant increase in the price of minted digital assets during the study period.
The price of Bitcoin (BTC), the largest cryptocurrency by market capitalization, reached an all-time high in October 2025, exceeding $126,000 per coin.
Despite the recent downturn in the cryptocurrency market, positive trends in Georgia mining continue into the new year. In January and February 2026, miners utilized 86.7 million kWh.
This accounts for 3% of the country’s total, but it should be noted that during the cold winter months electricity consumption increases for other purposes such as heating.
Miners provided affordable electricity and friendly regulations
Low-cost energy has played a key role in Georgia’s mining boom over the past few years. Most of the country’s electricity is generated by hydroelectric power plants.
The leading mining company taking advantage of relatively low tariffs is AITec Solutions, which is responsible for 450 million kWh of registered consumption.
The company operates the Gldani data center in Tbilisi, which was previously operated by Bitfury, one of the world’s leading digital asset infrastructure operators.
The latter was one of the first companies in the field to recognize Georgia’s potential as a cryptocurrency mining destination, but is now increasingly focused on AI computing.
Texprint Corporation is the second largest consumer of electricity among Georgia miners. The company’s facility, based in the Kutaisi Free Economic Zone, consumed 147 million kWh in nine months.
TFZ Service LLC ranks third with 104 million kWh on the meter. Although the company is not directly involved in Bitcoin mining, it serves as the primary power supplier to many mining farms.
The leader companies are followed by smaller companies such as ITLab with 24.6 million kWh of electricity and Sain Fiz with 18.6 million kWh. An additional 7.2 million kWh was billed to the DATA Hub.
While Georgia still manages to meet its electricity needs, other countries in the former Soviet region are already facing difficulties.
Kazakhstan, a mining hotspot in Central Asia, has introduced higher taxes on mining farms to combat deficits caused by the industry’s rapid expansion following a ban in China several years ago.
Since legalizing crypto mining activities in 2024, Russia has completely banned crypto mining in 13 regions facing energy shortages due to the concentration of miners.
Among the positive factors contributing to the growth of Georgia’s mining sector is the regulatory framework established by Tbilisi, including a favorable tax regime.
The Georgian government’s friendly attitude is not just for miners. The country’s central bank recently adopted rules that allow companies to issue fiat-pegged stablecoins backed by reserve assets.
