How Georgia Became a Global Energy Hub for Cryptocurrency Mining

In 2025, Georgia has firmly positioned itself as a critical node on the global cryptocurrency map. The country’s crypto mining sector has reached unprecedented levels—surpassing even major industrial sectors like steel production and Georgian Railways in terms of electricity consumption.

This trend is directly linked to the sharp rise in Bitcoin’s value, which has exceeded $95,000—a near-historic high. This surge has amplified global interest in crypto mining, and Georgia has emerged as one of the most active players in this rapidly evolving market.

According to the National Energy and Water Supply Regulatory Commission (GNERC), mining companies operating in Georgia consumed a total of 187 million kilowatt-hours of electricity in the first quarter of 2025. This figure is 7.5 times higher than the same period last year, pointing to exponential sector growth.

Leading in energy consumption is AI Tech Solution, operating in the former Bitfury data center in Tbilisi’s Gldani district, with 61.9 million kWh used. In second place is TFZ Service, which consumed 55.9 million kWh. Though not a direct mining company, TFZ provides electricity distribution services to mining operators, essentially functioning as an energy intermediary within Georgia’s technoparks.

It’s particularly notable that these companies are registered in Georgia’s Technology and Innovation Zones (TIZs)—designated areas that offer tax incentives, including VAT exemptions on electricity delivery. These incentives, along with Georgia’s comparatively low energy prices, make the country an attractive base for both foreign and domestic crypto enterprises.

Further signaling the sector’s boom is the unprecedented spike in server hardware imports, which reached $115 million in 2024—well above the prior average of around $30 million annually. This surge indicates not only growing mining capacity but also the strengthening of Georgia’s technical infrastructure. More servers mean greater hash power, higher output, and fiercer competition within the global mining network.

Other key players in Georgia’s mining landscape include:

• Texprint Corporation – 37.2 million kWh
• iTild – 24.6 million kWh
• Data Hub – 7.2 million kWh

All these companies also operate in TIZs, underlining the strategic importance of these zones in fostering next-generation industries.

However, this rapid expansion raises pressing questions about energy sustainability. In a small country with limited energy independence, such high-volume mining could pose risks to both domestic consumption and environmental standards. As a result, a reassessment of national energy policy and tighter regulation of the mining sector may soon become essential.

Today, Georgia—with its low tariffs, favorable tax regime, and strategic location—is an attractive platform for the global crypto industry. But in the long term, the country will need to strike a balance between economic benefit and energy resilience. As nations around the world move to regulate crypto assets, Georgia has become something of a real-time laboratory—a place where free-market opportunities coexist with the lack of comprehensive regulation, a combination that could evolve into systemic risk under continued explosive growth.

The crypto mining boom represents a new phase in Georgia’s digital economy. It brings not only increased state revenues but also new strategic imperatives: how to continue supporting the technology sector while safeguarding the country’s energy security and environmental sustainability.