Iranian energy officials have sounded the alarm over the impact of cryptocurrency mining on the national electricity grid, saying that crypto mining now accounts for as much as 15 to 20 percent of Iran's electricity imbalance.
According to Mohammad Allahdad, deputy director of power generation, transmission and distribution of Iran’s power company, Tavanir, crypto mining operations are responsible for consuming nearly 2,000 megawatts (MW) of electricity — roughly the output of two Bushehr nuclear reactors.
“While this represents around 5% of total electricity consumption, it accounts for up to 20% of the current power deficit,” Allahdad said on Monday, calling the figure significant and alarming.
During a recent internet outage linked to the conflict with Israel, power consumption nationwide dropped by 2,400 MW, which Tavanir attributes to the shutdown of over 900,000 crypto mining devices operating illegally -- further validating the scale of their impact.
Allahdad’s remarks come amid growing concerns over blackouts, infrastructure strain, and public discontent during the country’s sweltering summer months when electricity demand peaks. Amid blistering summer temperatures, electricity demand from air conditioners, agriculture, and industrial production surges.
Allahdad stressed that using power for crypto mining during high demand days is “not only illegal and unethical, but also harmful,” adding that it risks voltage drops, fuse failures, damage to household appliances, and even fire hazards.
“Crypto mining devices produce intense heat,” he said. “We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes.”
Illegal farms hidden in plain sight
Authorities say abandoned homes, empty shops, warehouses, and industrial buildings are often repurposed for clandestine mining operations. These facilities frequently feature high electricity usage and surveillance cameras, which serve as red flags for investigators.
“Identifying these operations is challenging,” Allahdad said, “especially in large industrial areas. That’s why public cooperation has been crucial.”
To support enforcement efforts, Tavanir launched a public reporting line. Citizens who report illegal operations can receive rewards of up to 200 million tomans (about $2,300).
One bitcoin equals 440 homes
According to Hadi Sefidmou, head of Iran’s Crypto Mining Oversight and Regulation Initiative, producing a single Bitcoin with older mining devices can consume up to 1 million kilowatt-hours (kWh) — equivalent to the annual power use of 440 Iranian households. Even newer miners with better efficiency still consume significant amounts, with average power usage per unit ranging between 2 to 3.5 kW.
Given that each device operates 24/7, each illegal miner consumes as much power as 12 households, Sefidmou said.
Crackdowns accelerate
As enforcement intensifies, seizures of mining equipment have surged since last year. Over 250,000 illegal devices have been seized across Tehran, Khorasan Razavi, Isfahan, Fars, Kerman, and East Azarbaijan, with most units hidden in abandoned homes, rural farms, industrial ruins, and suburban villas.
Just this week, 108 mining rigs were confiscated in the southern city of Ahvaz, discovered in an abandoned factory in the village of Khabineh, according to Mohammad Forati, CEO of Ahvaz Power Distribution Company. Forati said the operation had caused voltage drops across the area, prompting citizen complaints.
Mahmoud Mahmoudi, managing director of the Markazi Province Power Distribution Company, said on Tuesday that 445 cryptocurrency mining devices have been identified and confiscated in the province since the beginning of the current year (March 21).
Another recent case in Alborz province saw 26 crypto farms shut down from March to June alone, with 168 unauthorized devices confiscated. In another incident last week, power company staff in Alborz intercepted a vehicle transporting 26 miners.
Iran’s subsidized electricity remains among the cheapest in the world.
“With electricity consumption hitting new records — above 70,000 MW — we cannot afford to ignore this,” said Mostafa Rajabi Mashhadi, CEO of Tavanir. “Every illegal miner we unplug helps preserve power for citizens.”
