How a Bitcoin Mine Supports a Remote Zambian Community with Hydro Power

In the remote northwestern region of Zambia, a bitcoin mining operation has been set up next to a hydroelectric power plant on the Zambezi River. Philip Walton, from the Kenya-based company Gridless, runs the mine, which consists of 120 computers verifying bitcoin transactions in exchange for cryptocurrency rewards. The key to its success is cheap, clean electricity from the Zengamina hydro-power plant. This mini-grid was originally built with charity donations to power the local hospital and nearby community but struggled financially due to low energy demand. Partnering with Gridless allowed the plant to sell its excess power to the bitcoin mine, making up 30% of its revenue and keeping electricity prices low for locals.

The arrival of electricity has transformed life for the community, enabling businesses, refrigeration, and mobile connectivity. However, as the plant expands and connects to the national grid, bitcoin mining will no longer be viable in Zengamina. Gridless is prepared to move elsewhere, with projects across Africa tapping into ‘stranded energy’ sources. Despite concerns about bitcoin’s environmental impact, setups like these demonstrate a rare case where cryptocurrency mining contributes positively to local infrastructure and development.