Georgia's Crypto Mining Surge: Energy Advantage Meets Supportive Regulations

Georgia’s position as a leading crypto mining hub continues to strengthen, with digital asset operations now consuming 5% of the country’s total electricity supply. This rapid expansion reflects the convergence of three critical factors: abundant hydroelectric resources that keep power costs low, government policies that encourage industry participation, and rising cryptocurrency valuations that make mining increasingly profitable.

Why Electricity Consumption Jumped 80% in 2025

The scale of crypto mining activity in Georgia became unmistakable in 2025. According to official data from Business Georgia, electricity usage by mining operators surged nearly 80% throughout the year, reaching 675 million kWh between January and November alone. This dramatic increase positions crypto mining firms among Georgia’s largest power consumers, rivaling traditional industrial sectors.

The acceleration reflects industry legalization and the government’s decision to create a regulatory framework that encourages rather than restricts digital asset operations. When favorable tax policies introduced since 2019 combined with recent 2023 regulatory reforms, mining companies found Georgia increasingly attractive as an operational base. The timing coincided with substantial gains in cryptocurrency markets during late 2025, when Bitcoin surged past $126,000, motivating existing operators to expand and drawing new entrants to establish facilities.

Leading Operators and Their Energy Footprint

AITEC Solution emerged as the heaviest electricity consumer among mining firms, drawing 403 million kWh throughout 2025 from its facility in Gldani, Tbilisi—the same location where Bitfury previously operated extensive mining infrastructure. Following closely was Texprint Corporation, which utilized 135 million kWh from its base in the Kutaisi Free Economic Zone.

TFZ Service LLC occupied the third position with 104 million kWh consumed, though its role differs from direct mining operations. The company supplies electricity and infrastructure services to active mining enterprises based in Tbilisi, making it an essential component of the supply chain. Smaller operators ITLab and Data Hub rounded out the major players, consuming 24.6 million kWh and 7.2 million kWh respectively.

Nearly all these operators concentrate their activities in Georgia’s free economic zones, particularly in Tbilisi and Kutaisi. These designated zones offer substantial incentive structures, including reduced tax burdens and streamlined regulatory processes that facilitate industrial expansion. The geographic clustering enables shared infrastructure development and attracts additional investment to the sector.

Favorable Policies Create Competitive Edge for Crypto Mining

The Georgian government’s strategic decision to legalize and actively support crypto mining operations distinguishes the country from most regional competitors. Since 2019, miners have benefited from a low-tax operating environment designed to encourage both individual entrepreneurs and corporate-scale participants. The 2023 regulatory updates introduced compliance mechanisms without dismantling the fundamental advantages that made Georgia attractive.

Georgia’s energy advantage stems from its exceptional hydroelectric infrastructure, which generates approximately 80% of domestic electricity supply. The country’s abundant water resources and mountainous terrain create ideal conditions for cost-competitive power generation. This natural endowment enables Georgia to maintain electricity tariffs well below regional averages, directly benefiting energy-intensive industries like crypto mining.

A representative from GNERC, Georgia’s energy regulatory authority, emphasized that “low tariffs combined with clear regulatory rules have catalyzed sector growth.” This statement captures the dual appeal: miners gain operational predictability through transparent regulations while enjoying some of the lowest energy costs available globally.

Balancing Growth with Grid Stability

The expansion of crypto mining operations does introduce challenges for Georgia’s energy infrastructure. Rapid growth in mining electricity consumption requires careful management to ensure adequate supply for residential users and other industrial sectors. So far, the country has navigated this balance successfully by leveraging its hydroelectric capacity and monitoring demand patterns across all sectors.

This contrasts sharply with neighboring nations’ approaches. Kyrgyzstan halted mining operations entirely in November due to winter power shortages, prioritizing domestic consumption over industrial mining activity. Tajikistan and Russia implemented penalties targeting unauthorized mining to protect grid stability. Kazakhstan chose to raise electricity tariffs specifically for mining companies while simultaneously tightening regulations against unlicensed operators.

Georgia’s approach remains permissive within a legal framework, reflecting confidence in both its energy resources and regulatory oversight capacity. As crypto mining continues expanding in the country, the data from GNERC and industry reports confirm sustained upward pressure on electricity demand across all major operators. The concentration of facilities in free economic zones of Tbilisi and Kutaisi ensures geographic oversight while supporting regional economic development.