As interest mounts in leveraging Ethiopia’s increasing hydroelectric power output, regulatory shifts are underway to accommodate prospective entrants in emerging industries.
Balcha Reba (Eng), Director General of Ethiopia’s Communication Authority (ECA), said 11 data centers focused on crypto-mining services have either begun establishing operations or are in the process of doing so in Ethiopia’s ICT park.
Speaking to Shega at the sidelines of the Internet Development Conference last week, he revealed that licensing and oversight for data center businesses has shifted from the Ministry of Innovation and Technology to the Authority.
“Ethiopia’s weather and access to hydroelectric power make it ideal for data centers,” Balcha told Shega.
Ethiopia currently generates around 5,200 MW of power, with the pending completion of the Grand Ethiopian Renaissance Dam possibly doubling the supply at one of the cheapest rates in the world. Last week, Phoenix Group, a cryptocurrency firm listed on the Abu Dhabi Stock Exchange (ADX), signed an 80-mega-watt power purchase agreement with Ethiopia as part of its global strategy to diversify operations.
The Director also noted that three organizations, Wingu Africa, Redfox, and Raxio, that provide Data Center as a Service (DCaaS), have begun operations after investing tens of millions of dollars.
ECA is increasingly playing a prominent role in Ethiopia’s information, technology, and telecommunications landscape. The Authority was established as an independent agency five years ago through Proclamation 1148/2019. In its short stint, ECA’s powers have expanded to include oversight over Personal Data Protection following the ratification of the landmark bill in April 2024.
No Comment Found.