Russia currently offers incentives such as lower electricity rates, state funding, and tax breaks to data centers involved in AI development.
New legislation that prioritizes the use of computing power for artificial intelligence applications could limit the resources available for cryptocurrency mining. This comes as more miners around the world are turning to AI for predictability and increased profits.
Russia submits bill to regulate AI
Russia’s Ministry of Digital Development, Communications and Mass Media has announced a draft law aimed at regulating artificial intelligence (AI) in the country.
The document was published on Wednesday for a public hearing by mid-April and aims to establish clear rules for AI developers and companies in the coming months.
It also seeks to limit the risks associated with new technologies by introducing specific requirements for AI systems depending on their “degree of impact on human life and society.”
As reported by Interfax news agency and business news portal RBC, Russia is betting on artificial intelligence with a new law set to take effect by September next year.
The bill defines this as “a set of technologies that simulate human cognitive functions, including self-learning, and can produce results comparable to or better than humans.”
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As detailed in Cryptopolitan’s previous report, AI models are divided into three categories based on their origin and trust level: sovereign, state, and trusted.
The legal framework determines the rights and obligations of all parties involved in the development and use of such solutions and services.
It will also protect Russian citizens from covert operations and discriminatory algorithms, as well as block illegal content and abuse, the Digital Ministry said in a statement.
“All audiovisual material created using AI must contain a special warning label,” the announcement revealed, adding that social networks will be obliged to confirm its presence and label or remove the content.
AI will be given preferential treatment over crypto mining
The drafters of the bill have paid particular attention to ensuring the availability of the necessary computing infrastructure to support the development of AI in Russia.
The Moscow government plans to approve a list of data processing centers (DPCs) designated for artificial intelligence needs, which will receive certain benefits.
Operators of such facilities will be able to enter into long-term contracts to purchase power at lower cap rates than other industrial consumer rates.
They will also be connected to the electricity grid preferentially and will be exempted from connection fees.
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Companies operating AI data centers will receive funding from the national budget and will be offered various tax breaks.
All these privileges have given the artificial intelligence sector an advantage over the crypto mining industry, with both competing for the same computing power.
Russia, a leading country in the mining sector, legalized the minting of digital currencies such as Bitcoin in late 2024, but has since begun restricting energy-intensive activities in regions experiencing power shortages.
Another sign that AI will take precedence over mining came in the summer of 2025 when media reports revealed that Russian authorities were preparing to ban mining in DPC.
The main motive highlighted at the time was to deny cryptocurrency miners the opportunity to claim benefits aimed at increasing the country’s AI potential, such as access to cheap and often subsidized electricity.
Russia’s latest efforts to boost the development of artificial intelligence come as a growing number of mining companies around the world shift to data processing for AI applications.
This change is often driven by expectations for a better return on investment in hardware and greater predictability of the business compared to Bitcoin mining.
