Reuters reported that Somboun Sangxayath, an advisor to the Laos state-owned Electricity Company (EDL), said that due to the boom in cryptocurrency mining and unstable rainfall, Laos' electricity demand has increased, leading to power shortages. The data center policy established in 2021 has driven the growth of cryptocurrency mining businesses, which currently account for more than one-third of Laos' electricity demand. At the same time, reduced rainfall has suppressed hydropower production, further exacerbating the power shortage. Laos announced last year that it would not supply electricity to cryptocurrency projects that have not yet started operations.

Wu said that according to Reuters, Somboun Sangxayarath, an advisor to the state-owned Electricity of Laos (EDL), said that Laos' electricity demand has increased due to cryptocurrency mining and unstable rainfall, leading to power shortages. Sangxayarath said that the policy push to build data centers in 2021 has led to a boom in cryptocurrency mining, which currently accounts for more than a third of Laos' electricity demand, while reduced rainfall has suppressed hydropower production, leading to power outages. Laos said last year that it would not supply electricity to cryptocurrency projects that have not yet started operations.

Crypto mining and erratic rainfall blamed for worsening power shortages in Laos