Russia Considers Banning Mining in Data Centers

Russia may prohibit crypto mining in data centers to prevent miners from receiving state subsidies. The proposal would amend telecom and digital asset laws, aiming to boost control over electricity incentives.

New Amendments Will Cut Miners Off Benefits

Russia is preparing to ban cryptocurrency mining within data centers (DCs), according to Dmitry Grigorenko, Chief of Staff of the Government. The initiative is part of proposed amendments to multiple laws, including the Communications Law, to exclude miners from subsidy programs.

Since 2020, authorities have explored ways to reduce electricity costs for DCs. The initial draft passed its first reading in the State Duma back in 2022 and is now scheduled for a second review before the end of July.

Registered DCs to Exclude Mining Infrastructure

Key elements of the draft legislation include:

• Classifying DCs as telecommunications infrastructure.
• Creating a voluntary registry of DCs managed by the Ministry of Digital Development.
• Banning crypto mining infrastructure in DCs listed in the registry.

These changes aim to attract investments in the high-performance computing sector and address the shortage of computing capacity. DCs in the registry would be eligible for discounted electricity tariffs, reducing operational costs.