Newfoundland and Labrador Ration Power to Cryptocurrency Miner Amid Growing Energy Demand
By Andrew Rankin | Published November 28, 2025
Newfoundland and Labrador join other Canadian provinces. They now limit power to cryptocurrency mining. This choice comes from mining’s high energy use. Utilities and governments in Canada now cut back on crypto power to save electricity.
Rising Power Demands from Cryptocurrency Mining
Cryptocurrency mining runs strong computers nonstop. These computers solve math puzzles to check transactions and create new coins, mainly Bitcoin. The work needs vast power. It also strains local grids.
A Cambridge Digital Mining Industry Report (April 2025) shows Bitcoin mining uses about 138 terawatt-hours (TWh) per year. That is close to Ontario’s total use of 139.4 TWh last year.
Newfoundland and Labrador Hydro Limits Supply to Blockchain Labrador Corp.
Blockchain Labrador Corporation asked for 20 megawatts (MW) of steady power. They wanted to use the cool climate and low energy prices. Newfoundland and Labrador Hydro, the local utility, said no. They had little extra power available. In 2022, a government rule had freed the utility from giving power to new crypto miners.
Blockchain Labrador took the case to court. They said the process was unfair and the laws were misread. The court found no fault. The company also did not get special treatment for long-time customers.
A Nationwide Movement Against Energy-Intensive Crypto Operations
Newfoundland’s choice is not alone. Other provinces act too:
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New Brunswick: In 2023, a law stopped New Brunswick Power from serving new crypto miners. Old license holders stay insured.
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British Columbia: BC Hydro now bans new crypto mining projects. They say mining uses too much electricity and does little for the economy.
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Manitoba: The province pauses new power links for crypto mining until April 30, 2026. – Quebec: Quebec does not ban mining. They set higher rates and limit energy to crypto users.
Other regions like Norway, Russia, and Ethiopia also limit crypto power. Governments want to balance growth and energy care.
Energy Experts Highlight Structural Pricing and Future Challenges
Pierre-Olivier Pineau led Energy Sector Management at HEC Montréal. He sees these limits lasting. New tech needs more power, for example, artificial intelligence.
"We face many new, heavy energy uses," Pineau said. "We cannot let high power use disrupt the grid." He added that power prices do not show true costs. When new power is needed, utilities pay more and must choose wisely.
Looking Ahead
Cryptocurrency mining keeps needing large power. As demand grows, places like Newfoundland and Labrador must choose well. Their limits now steer scarce energy to vital uses. This move helps balance economic gain and sustainable power use.
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