Kuwait Cracks Down on Crypto Miners as Power Grid Buckles Under Strain

Kuwait pulls the plug on energy-guzzling crypto farms—just as another blackout hits. Guess those ’digital gold’ miners forgot electricity isn’t free.

Subheading: Power crisis forces hand

The government slammed the brakes on all cryptocurrency mining operations this week, citing chronic grid instability. Turns out proof-of-work doesn’t mix well with 50°C summers and aging infrastructure.

Subheading: Miners face desert exodus

With energy subsidies slashed and regulators circling, Kuwait’s brief crypto gold rush collapses faster than a shitcoin after a CEX listing. Next stop? Probably Texas—where they’ll blame renewables for the next grid failure instead.

Kuwait struggles with rising energy consumption

The move comes as the nation faces recurring blackouts, caused by rapid population growth and rising temperatures. In May, temperatures range from 32°C (90°F) to 39°C (102°F), placing major strain on the electric grid. Widespread air conditioning use is a significant contributor to overall electricity demand.

At the same time, Kuwait ranks within the top 20 countries in the world with the cheapest electricity. According to one report, electricity in Kuwait costs just 2.9 cents per kilowatt-hour, much lower than in most industrialized countries.

Because electricity is one of the most important inputs in proof of work mining, miners in places like Kuwait are more competitive than in many other countries. This has made it an attractive nation for crypto miners, coming out as one of the cheapest places to mine crypto.

While crypto mining was not the only factor contributing to high energy use, Kuwait was not the only country that banned the practice. Earlier, Russia and China, both countries that boast cheap energy, banned the practice. Russia cited strains on the electric grid, while China banned mining due to its commitment to a green energy transition.