The government of Laos has announced that it will cut electricity to crypto mining operations by early 2026, marking a significant policy shift as the nation pivots toward powering its artificial intelligence (AI) and electric vehicle (EV) industries. The move signals Laos’s intent to transform its energy strategy from volatile crypto mining revenues to long-term, innovation-driven growth sectors.
Laos Phases Out Power for Crypto Mining by 2026
The Lao Ministry of Energy and Mines confirmed that all licensed crypto mining operators will lose access to government-supplied electricity within the next 18 months. The decision follows an internal review that found crypto mining was placing pressure on the national grid while providing limited economic benefits.
According to government data, energy consumption by crypto miners in Laos surged over 120% since 2022, driven by foreign-backed operations attracted by cheap hydropower. Officials stated that the transition will allow the country to reallocate clean energy to industries that create long-term employment and value.
From Crypto Mining Hub to AI and EV Innovation
When Laos legalized crypto mining and trading in 2021, it aimed to leverage its hydropower surplus and attract foreign investment. Over a dozen licensed firms, mainly from China and Thailand, set up operations, bringing in an estimated $200 million in foreign capital.
However, the global downturn in Bitcoin mining profitability and fluctuating energy markets have led the Lao government to reconsider its priorities. Officials now plan to repurpose energy previously allocated to crypto miners to support AI data centers, EV assembly plants, and digital infrastructure development.
This pivot aligns with the government’s Digital Laos 2030 Strategy, which seeks to establish the country as a regional hub for clean technology and AI-driven industries.
Redirecting Hydropower to High-Value Sectors
Laos produces more than 80% of its electricity from hydropower, exporting a large portion to Thailand, Vietnam, and Cambodia. By cutting power to energy-intensive crypto mining, the country aims to balance domestic energy use, maintain export stability, and attract sustainable tech investment.
The Electricité du Laos (EDL) utility has already begun identifying AI and EV manufacturers that could benefit from redirected hydropower allocations. Industry experts believe this approach will position Laos as an attractive destination for data center operations powered by renewable energy, especially as global companies seek low-carbon AI infrastructure.
Decline of the Lao Crypto Mining Sector
The decision effectively ends the brief crypto mining boom that began in 2021. At its peak, Laos hosted more than 50,000 mining machines, most of them owned by foreign operators under government-approved projects.
However, falling Bitcoin prices, increased global competition, and energy efficiency regulations have made mining less profitable. The government has stated that it will not renew crypto mining licenses once they expire, though existing miners will have until 2026 to wind down operations.
This approach mirrors regional trends: Kazakhstan, Malaysia, and China have all tightened controls on crypto mining to manage electricity consumption and environmental impact.
A Strategic Shift Toward Digital Sustainability
The policy reflects Laos’s broader ambition to modernize its economy and leverage hydropower for digital transformation. The government believes that AI, EVs, and digital manufacturing can generate sustainable employment, foreign investment, and technological advancement — without the volatility and environmental concerns tied to crypto mining.
As the global economy accelerates toward AI-driven industries, Laos’s shift could make it a strategic player in green technology, supplying both energy and infrastructure to Southeast Asia’s growing digital sector.
FAQs
Q1: Why is Laos cutting power to crypto miners?
Laos is ending its Power supply to miners to redirect energy toward AI, EV manufacturing, and digital infrastructure, which offer more sustainable growth.
Q2: When will crypto miners lose electricity access?
The government will fully cut power by early 2026, with a phased reduction beginning in 2025.
Q3: How large was the crypto mining industry in Laos?
At its peak, Laos hosted over 50,000 mining rigs operated by foreign investors.
Q4: What sectors will replace crypto mining?
Energy will be redirected to AI data centers, EV manufacturing plants, and renewable-powered tech industries.
Q5: Is Laos banning crypto mining completely?
There’s no official ban, but cutting power access effectively ends large-scale crypto mining operations in the country.
