Ethiopian Investment Holdings (EIH) signed a memorandum of understanding with Hong Kong-based West Data Group’s Center Service PLC to initiate bitcoin mining operations.
EIH the investment arm of the Ethiopian Government.
The collaboration is governed by a comprehensive agreement for a significant $250 million data mining initiative “aimed at establishing state-of-the-art infrastructure for data mining and artificial intelligence training operations in Ethiopia,” as stated by the EIH.
Ethiopia is strategically positioning itself as a frontrunner in the data center sector in Africa, which is projected to reach $5.4 billion by 2027, according to Aritzon Advisory and Intelligence.
According to Kal Kassa, CEO for Ethiopia at Hashlabs Mining, the development is aligned with the Ethiopian Government’s goal of boosting economic growth through the strategic use of technology and energy resources to attract foreign investments.
Ethiopia has about 5,200 MW of installed generation capacity, with around 90 percent of it coming from hydropower and the remaining 10 percent from wind and thermal sources.
It is also finalising construction of the Grand Ethiopia Renaissance Dam (Gerd), which has a projected installed capacity of 5,150 MW.
About 40 percent of Ethiopia’s 120 million people do not have access to electricity.
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