Coin Edition -
- Ethiopia’s $250M AI and Bitcoin mining deal aims to position it as Africa’s tech hub.
- Ethiopia dives into crypto mining, navigating challenges in electricity access.
- Partnership with West Data Group highlights Ethiopia’s push for tech and blockchain leadership.
The Ethiopian government, through its investment arm, Ethiopian Investment Holdings, has signed a Memorandum of Understanding with Data Center Service, a subsidiary branch of the Hong Kong-based West Data Group. This partnership, valued at $250 million, aims to pioneer sophisticated data mining and artificial intelligence (AI) training facilities within Ethiopia.
State-owned Ethiopian Investment Holdings has signed a Memorandum of Understanding with Data Center Service, a subsidiary of Hong Kong’s West Data Group. They will cooperate on a $250-million project to establishing cutting-edge infrastructure for bitcoin mining and AI training.…— Wu Blockchain (@WuBlockchain) February 16, 2024
Kal Kassa, the CEO of Hashlabs Mining, revealed on an X post that through this joint venture, the Ethiopian government will delve into bitcoin mining operations. Hashlabs Mining highlights the country’s openness to mining activities since 2022, despite its stance against cryptocurrency trading.
The initiative seems to gain further complexity with the Ethiopian government’s experimental sandbox for “cryptographic products” licensing, per a Bloomberg report dated February 7.
Additionally, Ethiopia, benefiting from low electricity rates thanks to the partially operational Grand Ethiopian Renaissance Dam, faces a dilemma. The nation boasts the world’s second-lowest electricity prices yet struggles to provide consistent electricity access to half its population. This disparity fuels the debate on the prioritization of resources in the country.
As per another report, the presence of 21 crypto miners in Ethiopia, predominantly Chinese, underscores the global interest in Ethiopia’s potential as a mining hub. This interest persists despite the crypto trading and mining ban in their home country, China.
Ethiopia’s government has also engaged with the crypto mining community, supported by entities like Project Mano and BitcoinBirr, coupled with its collaboration with Cardano blockchain’s IOHK to revamp its education system.
West Data Group, known for its blockchain-fueled fintech solutions and data centers globally, brings to the table its expertise in Bitcoin mining, digital currency investment, and trading. Established in 2017 with its first data center in Kentucky, the company has expanded its footprint to Texas, Kazakhstan, Angola, and Kenya, signaling a robust commitment to digital currency endeavors.
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