Ethiopia cuts power to Bitcoin miners amid El Niño‑driven hydropower strain

Ethiopia’s state‑owned utility, Ethiopian Electric Power (EEP), has lowered electricity deliveries to Bitcoin mining operations to just 23% of their contracted amounts. The cut follows a 20% decline in reservoir inflows caused by El Niño‑related dry conditions, which have pressured the nation’s largely hydro‑electric power system.

Impact on miners and the utility

Bitcoin miners previously consumed almost one‑third of Ethiopia’s electricity output and generated about 35% of EEP’s revenue in the last fiscal year. EEP initially reduced deliveries to 75% of contracts, then to 50%, and finally to the current 23% level. The utility will reassess water‑level and supply conditions in October, with further reductions or possible restrictions on electricity exports also under consideration.

Hydropower’s role in Bitcoin’s energy mix

Hydropower now accounts for the largest reported source of electricity for Bitcoin mining worldwide, a shift highlighted by recent Cambridge research that cited increased activity in hydro‑rich regions such as Ethiopia. The country’s installed generation capacity is roughly 5,200 MW, with miners using about 600 MW, primarily from hydro sources.

Broader mining economics

Mining profitability has been under pressure from lower block rewards after the April 2024 halving and a decline in Bitcoin’s price, which fell more than 35% over the past year. Global mining electricity consumption and capital spending may have peaked in 2024‑2025, according to economist Saifedean Ammous.

Emerging competition from AI data centers

Bitcoin miners are increasingly repurposing their power agreements, land, and cooling infrastructure for artificial‑intelligence (AI) and high‑performance computing (HPC) workloads. Public miners reported $341.2 million in AI/HPC revenue in the first half of 2026, and industry estimates suggest up to $50 billion may be needed to build the planned AI infrastructure.

Outlook

Ethiopia’s power cuts illustrate how climate‑driven water shortages can affect crypto‑related electricity demand. The situation will be revisited in October, and further reductions remain possible if reservoir levels do not improve.