2024-02-17 09:00:00
The cradle of humanity has become connected. China has clearly set its sights on Ethiopia and is increasing trade agreements with the second most populous country in Africa. Today, it is a Hong Kong data center specialist who has just signed up with the state company Ethiopian Investment Holdings to take advantage of the country’s exceptional pricing conditions. Because you should know that Ethiopia is regarding to soon complete the construction of what will be the largest artificial water reservoir in Africa. This pharaonic infrastructure called the Renaissance Dam should be completed in 2025, but it already allows the Addis Ababa authorities to offer some of the cheapest energy prices in the world. And guess which industry is attracted to such low energy prices?
Very cheap electricity thanks to a gigantic dam
THE bitcoin miners, of course! We already knew that 19 out of 21 companies officially registered by the authorities in this sector of activity were Chinese, but things are accelerating with the signing of a new trade agreement. This time it is regarding Data Center Service, a subsidiary of the group West Data based in Hong Kong, which has therefore just signed with the state enterprise Ethiopian Investment Holdings. The first statements by Hong Kong leaders gave indications of the nature of their activities in the country:
“Ethiopia and West Data will cooperate on a $250 million project which will be dedicated to creating cutting-edge infrastructure in terms of data storage and exploitation, but also everything related to artificial intelligence in Ethiopia. »
Responsable d’Ethiopian Investment Holdings – Source : LinkedIn account
But behind the scenes of this summit meeting, it was rumored that bitcoin mining might also be on the agenda, even if the subject was not addressed publicly by the protagonists of the file.
Ethiopia attracts bitcoin miners and data centers
However, we know that the authorities have already authorized foreign companies to mine cryptocurrency in the country, but above all that West Data Group is one of the world’s leading specialists in the sector. The group already has facilities in Angola and Kenya, but also in Kentucky and Texas, and it would surely benefit from the very low energy prices in the Horn of Africa. Hence this reflection from a local actor:
“The Ethiopian government will mine Bitcoin through its partnership with Data Center Service. »
Kal Kassa, CEO for Ethiopia at Hashlabs Mining – Source: Cointelegraph
While it’s not even completely finished yet, this barrage, among the most important people in the worldwill therefore allow Ethiopia to play a major role in the African landscape of data storage and mining cryptocurrency. Bitcoins mined using green and renewable energy are something to rejoice in the cryptosphere.
However, the picture is not perfectly idyllic to the extent that this mega structure raises serious environmental and economic concerns downstream, where Sudan and Egypt take a dim view of this appropriation of natural resources by Ethiopia. But this does not matter to the authorities in Addis Ababa who seem determined to fully exploit this new vein.
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