Ethiopian Electric Power announced it will begin phasing out data mining companies that generated more than 28 billion birr in revenue during the 2024/25 fiscal year and will stop issuing licenses to new operators, as reported by BBC Amharic.

The utility said it collected 39 percent of its total 75.4 billion birr revenue in 2024/25 from data mining firms. This sector now accounts for the largest share of the company’s income, surpassing electricity sales to regular consumers.

Despite the significant income, the company plans to halt expansion in this area. Chief Executive Officer Asheber told reporters on Thursday that data mining consumes large amounts of electricity but does not contribute to job creation or broader economic growth, which are now the company’s priorities.

“We started supplying power to data miners on a short-term basis to generate foreign currency for ongoing projects,” Asheber said. “Concerns remain about the low prices charged to these companies, which has attracted operators driven out from elsewhere. There is also worry about their high power consumption.”

Asheber added that data mining companies are expected to either shift their business models or exit the sector within a few years. The government has withdrawn previous incentives, including tax holidays, and awaits a decision on revised payment rates.

“We have completely stopped registering new data mining companies and will not enter new contracts,” Asheber said. “Our plan is to maintain current contracts while discouraging further growth because data mining uses energy without creating additional employment or value.”

The utility emphasized that future electricity supply will focus on industries with the potential to drive economic revival. While some data mining firms are still in the process of equipment importation, Ethiopian Electric Power projects revenue from this sector will increase to 109 billion birr in the 2026 fiscal year.