Cryptocurrency mining is reportedly booming in Georgia due to affordable electricity prices and the legalization of the industry.
According to official statistics, mining companies currently use about 5% of the electrical energy generated in the South Caucasus country.
Georgia mining farms nearly double electricity usage
Cryptocurrency mining in Georgia is experiencing record growth, as evidenced by a significant increase in the sector’s electricity consumption, local media revealed.
According to a report on the Business Georgia portal, electricity usage by large data processing centers is increasing rapidly.
This computing facility is primarily located in Tbilisi and Kutaisi Free Economic Zone and is primarily engaged in minting digital currencies.
The output of companies involved in virtual currency activities tripled last year, the economic news agency announced on Tuesday.
According to figures provided by the Georgian National Energy and Water Supply Regulatory Commission (GNERC), 675 million kWh of electricity was consumed from January to November 2025, now accounting for 5% of the country’s total consumption.
The region’s Russian-language online newspaper Vesti Kavkaza estimates that this is almost 80% more electricity than it used the previous year.
Analysts attribute this upward trend to several factors, including rising digital asset values in 2025, relatively low electricity prices in former Soviet republics, and the Georgian government’s efforts to legalize and regulate the sector.
While the price of Bitcoin (BTC), the cryptocurrency with the largest market capitalization, reached an all-time high of over $126,000 in October, Georgia’s cheap energy and friendly regulations convinced mining giant Bitfury to start operations in the state.
Who consumes the most power among miners?
With 403 million kWh of electricity, AITEC Solutions is the largest consumer among data center operators. The company operates the Guldani facility in Georgia’s capital Tbilisi, where Bitfury previously mined.
Texprint, which operates in Kutaisi Free Economic Zone, is the second largest electricity consumer. It used 135 million kWh from January to September.
TFZ Service LLC ranks third with 104 million kWh. This particular company is not directly engaged in mining cryptocurrencies, but it supplies electricity to mining companies operating in the Tbilisi Free Industrial Zone.
Two other companies are in the top five, according to details from Business Georgia. ITLab consumed 24.6 million kWh and Data Hub accounted for 7.2 million kWh.
Increasing electricity use in mines poses challenges for regional countries
Georgia allows businesses and individuals to freely mine cryptocurrencies, and has maintained tax incentives since 2019, but legislation adopted in 2023 will increase oversight in this area.
The country produces the majority of its electricity using hydropower, with up to 80% of the electricity generated in the country coming from hydropower plants that still meet demand.
However, the coin minting boom in the rest of the former Soviet Union region is causing energy shortages due to increased electricity consumption, creating headaches for local and national authorities.
The Russian Federation legalized cryptocurrency mining at the end of 2024, but has since banned cryptocurrency mining operations in about 12 regions.
Illegal activities such as mining using stolen electricity will be punished with large fines and prison terms. A bill introducing new measures has just been introduced in parliament.
Elsewhere, Tajikistan threatened illegal cryptocurrency miners with similar penalties through an amendment approved by parliament late last year.
In November, Kyrgyzstan shut down all cryptocurrency mining farms operating on its territory, mainly due to increasing power shortages during the cold winter months.
Kazakhstan, on the other hand, has largely managed to overcome this problem by increasing electricity prices for crypto farms and introducing stricter regulations for the industry.
