Crypto Mining Expands in Georgia with Low Rates and New Regulations

TLDR

• Crypto mining operations in Georgia now consume around 5 percent of the country’s total electricity output.
• AITEC Solution is the leading electricity consumer among mining firms with 403 million kWh used in 2025.
• The Georgian government supports the industry through low electricity rates and favorable regulatory policies.
• Mining facilities are mostly located in free economic zones in Tbilisi and Kutaisi.
• Bitcoin reached an all-time high of over $126,000 in October 2025, driving further mining interest.

Crypto mining in Georgia is increasing fast as companies take advantage of cheap energy and supportive government policies, with electricity consumption by mining facilities now accounting for 5% of national use.

Electricity consumption by mining facilities in Georgia has surged, driven by industry legalization and low power prices. According to Business Georgia, power usage in this sector rose almost 80% in 2025, with 675 million kWh consumed from January to November. This rise places crypto mining firms among the largest power consumers in the country.

Power-Hungry Operators Lead Georgia’s Mining Sector

AITEC Solution consumed 403 million kWh, making it the top electricity user among mining firms, according to the latest data. The company operates from the Gldani facility in Tbilisi, where Bitfury previously managed crypto mining operations. Texprint Corporation followed with 135 million kWh used from its Kutaisi Free Economic Zone base.

TFZ Service LLC ranked third, consuming 104 million kWh while supplying electricity to active mining firms in Tbilisi. Though it does not directly mine cryptocurrencies, its role in the industry remains essential. Two more firms, ITLab and Data Hub, used 24.6 million kWh and 7.2 million kWh, respectively.

Most of these operators run from Georgia’s free economic zones, where the government offers incentives. These zones help minimize tax burdens while promoting industrial expansion. Authorities introduced legal oversight in 2023 to ensure compliance in the rapidly growing sector.

Government Policies and Energy Costs Drive Growth

The Georgian government legalized crypto mining and created a favorable regulatory environment to attract investment. Since 2019, miners have operated under a low-tax system, promoting both individual and corporate participation. The reforms in 2023 introduced tighter control without removing the advantages.

Georgia continues to rely heavily on hydroelectricity, which generates nearly 80% of its domestic power. The abundance of water resources keeps electricity prices low, attracting crypto operations. “Low tariffs and clear rules have boosted activity,” a GNERC representative stated.

Rising cryptocurrency prices in 2025 also contributed to the spike in mining interest. Bitcoin reached an all-time high of $126,000 in October, encouraging more operators to expand. As a result, energy consumption from mining operations tripled in one year.

Crypto Mining Pressures Grid, Georgia Responds

Despite the benefits, growing mining activity places pressure on Georgia’s energy grid. Authorities are monitoring demand to maintain supply for residents and other industries. So far, the country has avoided shortages by balancing hydroelectric output with consumption.

In contrast, other former Soviet nations imposed restrictions. Kyrgyzstan halted all mining farms in November due to winter power shortages. Tajikistan and Russia introduced penalties against illegal operations to protect their grids.

Kazakhstan addressed the issue by raising electricity prices for mining companies. The country also tightened regulation to control unauthorized operations. Georgia, however, continues to support the industry within legal limits.

The crypto mining trend in Georgia remains strong, supported by favorable laws and energy availability. Data from GNERC confirms rising consumption patterns across all major crypto-related operators. Crypto firms maintain a strong presence in free economic zones such as Tbilisi and Kutaisi.

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