Comprehensive Analysis of Low-Cost Mining Locations Worldwide
Large-scale Bitcoin mining is driven above all by extremely low all-in power costs. The cheapest viable markets today range from heavily-subsidized hydro or fossil hubs to projects using stranded gas or off-grid renewables. Notable candidates include oil- and gas-rich nations with ultra-low tariffs, renewable power exporters, and industrialized markets with special crypto deals.
Behind-the-meter flared gas and wind power. Marathon Digital achieves sub-$0.018/kWh costs. Strong infrastructure and stable regulations.
Oman's 800 MW project repurposes flared gas. Off-grid operations next to oil wells deliver exceptional power costs.
Massive hydro surplus from Itaipú (14 GW) and Yacyretá (4 GW) dams. HIVE runs 200 MW with fixed-rate hydroelectric power.
Africa's largest hydro plant (8.5 GW GERD) with cool highland climate. Government-backed mining at competitive rates.
Ultra-low operating costs with 90% hydro generation. Marathon, Riot, and CleanSpark deploy 100+ MW here.
Hydro-Québec's Rate CB offers competitive pricing. Frigid winters ideal for cooling with modern infrastructure.
All-renewable grid with near-Arctic cooling. Limited scalability (~120 MW) due to island constraints.
| Country/Region | Main Energy | Cost | Climate | Regulatory |
|---|---|---|---|---|
| Iran | Oil/Gas (grid) | 0.2–5¢/kWh | Hot, mild winters | Permitted (with bans) |
| USA (Texas) | Wind & flared gas | 1–4¢/kWh | Hot summers | Friendly |
| Kazakhstan | Coal/Gas (grid) | 2–3¢/kWh | Continental | Regulated (tariffs) |
| Canada (QC) | Hydro/Electric | 4.5–6.0¢/kWh | Cold year-round | Permitted (bids) |
| Paraguay | Hydro (Itaipú) | 5–8¢/kWh | Subtropical | Permitted (recent hikes) |
| Ethiopia | Hydro (GERD) | 3–4¢/kWh | Highland/mild | Permitted (state-led) |
| Kyrgyzstan | Hydro (90%) | <3¢/kWh | Mountainous/cold | Permitted (open) |
| Oman/Qatar | Flaring Gas | <2–3¢/kWh | Desert hot | Permitted (encouraged) |
| Uzbekistan | Gas (grid) | 5–7¢/kWh | Continental | Permitted (incentives) |
| Russia | Hydro/Coal | 1–5¢/kWh | Siberian cold | Banned in parts (2024) |
| Iceland | Geo/Hydro | 5–6.5¢/kWh | Subarctic cold | Permitted (moratorium) |
Capacity: 139 MW portfolio
Setup: 25 MW off-grid flared gas (TX/ND) + 114 MW behind-the-meter wind
Cost: Sub-$0.018/kWh on flared gas, zero-marginal-cost wind energy
Marathon highlights innovative use of stranded energy resources with dedicated wind farms for mining operations.
Capacity: 200 MW hydro site at Yguazú
Production: ~8.5 BTC/day
Expansion: Phase 3 adds 100 MW (Valenzuela) to reach 300 MW total
CEO emphasizes "fixed-rate hydroelectric power" for cost predictability and long-term stability.
Contracts: 60+ signed with miners
Hash Rate: ~5% of global hash
Power Source: Unused GERD output at ~3¢/kWh
Rapid growth with Chinese investors leveraging Ethiopia's renewable surplus and cool highland climate.
Bitcoin mining operations utilize various configurations to optimize costs:
Long-term power purchase agreements with utilities. Common in hydro-rich regions like Paraguay and Kyrgyzstan.
Owning generation assets (wind farms, solar) to power mines directly, eliminating transmission fees.
Tapping stranded gas at oil fields. Common in Texas and Oman/Qatar oilfield operations.
Solar+battery systems or co-location with industrial partners (aluminum smelters, water treatment).
Today's lowest-cost mining locations fall into four categories:
Paraguay, Ethiopia, Kyrgyzstan – Abundant renewables, very low cost, miner-friendly policies (though country risk varies).
Iran, Venezuela, Russia – Ultra-cheap power via subsidies but high political and regulatory risk.
USA, Canada, Iceland – Moderately cheap (3–6¢) but extremely stable and scalable with excellent cooling.
Texas, Oman – Off-grid models delivering sub-2¢ effective costs by utilizing flared gas.
Investment Considerations: Investors should weigh raw electricity price against regulatory stability, infrastructure quality, climate benefits, and scalability potential. The optimal location balances low cost with operational support and long-term viability.