Bitcoin Mining in the Zambian Bush: A Crypto Boom Powered by Hydroelectricity

ZAMBIA – In the remote northwestern region of Zambia, where the roar of the Zambezi River dominates the soundscape, another hum cuts through the bush—the whirring of a bitcoin mine. Operated by Kenya-based company Gridless, this off-grid mining facility is leveraging the power of a local hydroelectric plant to generate digital wealth while supporting rural electrification.

Turning Excess Energy Into Profit

Housed in a shipping container, the mine consists of 120 computers working continuously to verify bitcoin transactions. In return, they are rewarded with bitcoin, turning computational power into financial gain. According to Gridless executive Philip Walton, the facility’s success hinges on access to the region’s surplus hydroelectric power.

"We recognized that in order to get better mining economics, we needed to partner with the power company and share revenue. This remote location allows us to access cheaper energy," Walton explained.

The facility is plugged into the Zengamina hydroelectric plant, a mini-grid built in the early 2000s with $3 million in charitable donations. Originally designed to power a hospital and local communities, the plant struggled to cover operational costs due to limited energy consumption.

Bitcoin mining has changed that equation. With the mine consuming excess energy, the hydro plant now generates 30% of its revenue from Gridless, keeping electricity prices affordable for local residents.

A Boon for the Local Community

The impact of consistent electricity in the nearby town of Zengamina is evident. Business owners like barber Damian have seen their livelihoods transform.

"Before power, I had nothing. Now, I can run my shop, play music, and even pay for school fees," he said.

For local residents, the advent of electricity means access to refrigeration, mobile networks, and basic digital services. Sisters Tumba and Lucy Machayi recall a time when the town relied on small solar panels.

"Electricity changed everything. Now we can charge our phones and communicate," said Lucy.

The Future of Crypto Mining in Africa

While the Gridless project has helped sustain the hydro plant, the partnership is temporary. With new investment secured, Zengamina will soon connect to the national power grid, making bitcoin mining less viable.

Gridless, however, is already eyeing new opportunities. The company operates six similar sites across Africa, including a mine in Congo’s Virunga National Park, which helps fund conservation efforts. Looking ahead, Gridless plans to build its own hydro plants to both mine bitcoin and expand rural electrification.

Despite the benefits, bitcoin mining remains controversial due to its high energy consumption. Countries like Kazakhstan and the U.S. have faced conflicts between crypto miners and local energy demands. However, companies like Gridless argue that their model prioritizes sustainable energy use while supporting local economies.

With African nations holding vast untapped hydro potential, the fusion of cryptocurrency and renewable energy could redefine the region’s digital and economic future.