Russia, which is projecting an increasing demand for computing power to meet digitalization and artificial intelligence needs, will ban cryptocurrency mining in data centers.
A provision prohibiting the mining of digital coins in such facilities has been added to the bill drafted by President Putin’s order.
Russian government bans crypto miners from data centres
Russian authorities plan to ban data processing centres (DPCs) from mining cryptocurrency. The main motivation behind this move is to prevent Bitcoin miners from claiming profits aimed at increasing the likelihood of Moscow in AI races, such as access to cheap electricity.
The amendments to that objective have been added to the draft law dedicated to prioritizing data center development. The change came ahead of a second read in the state Duma, the House of Representatives of the Russian parliament, media reports revealed this week.
The bill introduces new provisions in several laws that lawmakers have already been finalized, and has been announced by the Business News Outlet RBC in a post, citing the representative of Deputy Prime Minister Dmitry Grigorenko, who oversees the Russian government’s Chief of Staff and regulatory efforts.
The updated law defines DPC as a communications facility. These will be listed in a special register administered by the Ministry of Digital Development, Communications and Mass Media of the Russian Federation.
Registered data centers are prohibited from hosting cryptographic mining infrastructure and carrying out mining activities, with article details. The Duma is expected to vote for the proposal by the end of this month, a source familiar with the process told the publication.
Officials say DPCs are offered discounted power rates to reduce operational costs, and quick connections to the grid to bypass bureaucratic hurdles — the advantages that have been rejected by crypto mining companies since Moscow legalized its business last year.
Digitalization and AI development (AI) involves storing and processing huge amounts of data. To do that effectively, the number and capacity of data centers must be increased, explained and elaborated the government representatives.
“Transparent and understandable regulations are the first step. Data centers are not just server rooms but communication facilities, and clear rules create the basis for additional support measures.”
Russia may have turned on cryptocurrency miners
The priority treatment of data centers is based on Vladimir Putin’s order in 2020, which cited the government how to support the sector.
However, the crypto mining industry, which was regulated by a law signed by the Russian president in 2024, has seen a completely different attitude from both the federal and local governments. Since the 2024 ruling, activities have been banned on around 12 territories, from the Far East to occupied Ukraine.
To a participant in last week’s development forum, Putin justified the mining restrictions that will be introduced for the next six years in some corners of his vast country, which require wisely exploiting Russian resources. Quoted by the Kremlin Press Service, he explained:
“We were pleased that there was a surplus of electricity in some areas recently. But they started to actively mine there and the governor began complaining to me… we had to make a specific decision.”
Using low, often subsidized electricity rates in places like Irkutsk’s Siberian durability, cryptocurrency miners have been accused of turning energy surplus into electricity damage. Several ban requests from local officials have been turned down by Moscow’s enforcement department, citing the risk of a decline in budget receipts and energy revenues.
The latest government move towards Russia’s mining operations is aimed at solving another shortage, and the computing power move could cause more problems. For example, the largest data center in the Irkutsk region is run by the huge mining Bitriver.
If the law is adopted in its current form, it could hurt not only the mining sector but also the DPC industry, according to blockchain, energy and digital finance analyst Oleg Ogienko. Talking to the local information portal Ircity, he noted that many data center operators had installed mining hardware on their sites and predicted that the new rules would result in economic losses for these companies.