Laos to End Power Supply for Crypto Miners by Early 2026

Laos is preparing to cut off its electricity supply to cryptocurrency mining operations by the first quarter of 2026, as the government looks to focus its resources toward industries that could help the country generate greater economic value, as announced by the Deputy Energy Minister Chanthaboun Soukaloun.

The landlocked Southeast Asian nation became a magnet for crypto miners in 2021 after easing restrictions on the sector. The policy attracted operators seeking low-cost, renewable electricity from Laos’ abundant hydropower reserves.

But the government now plans to redirect that energy to higher-value industries such as artificial intelligence (AI) data centers, metals refining, and electric vehicle manufacturing. Soukaloun explained how the policy was only meant to be temporary.

“Crypto doesn’t create value compared to supplying it to industrial or commercial consumers. We initially allowed crypto mining because of domestic electricity oversupply, but the industry contributes little to jobs or the wider economy.”

According to Soukaloun, Laos has already cut the electricity supply to crypto by more than 70%-from the peak of 500 megawatts in 2022 to a mere 150 megawatts this year.

The official added that while the original cutoff was planned for this year, surplus rainfall had increased hydropower output, allowing the extension of supply and additional exports to Thailand and Vietnam.

“I think by the end of the first quarter of 2026, we might stop supply to crypto entirely.”

Often referred to as the “battery of Southeast Asia,” Laos plays a critical role in regional clean energy exports, supplying most of its hydropower to independent producers in Thailand and Vietnam. Hydropower exports are essential to helping neighboring countries decarbonize amid limits on expanding solar and wind capacity.

Soukaloun noted that Laos is currently considering expanding its electricity export capacity to Vietnam beyond the current 8,000 megawatts, with further bilateral discussions under way.

Arbitration with China and Upcoming Regional Energy Moves

Laos is also managing a $555 million arbitration case brought by a subsidiary of China’s state-owned Power Construction Corporation against the national utility, Electricite du Laos (EDL). The claim relates to unpaid dues from a $2.73 billion hydropower project.

“It’s their right to pursue arbitration under the power purchase agreement. We’ll proceed until the process concludes or the claimant withdraws the case.”

He did not comment on whether Laos had sought to revise the amount claimed, citing confidentiality, but said the debt arose due to mismatches between projected and actual demand.

Meanwhile, Laos expects electricity exports to Singapore through the Lao–Thailand–Malaysia–Singapore (LTMS) power transmission corridor to resume soon. Trade through the link was suspended last year amid delays in extending cross-border agreements between Thailand and Singapore.

On Thursday, the four countries reaffirmed their commitment to expanding multilateral energy cooperation and cross-border power trade, though no timeline was provided for resuming exports.

For Laos, the gradual phaseout of crypto mining underscores a broader realignment of national priorities—channeling its vast hydropower capacity toward more sustainable, strategically important industries that can drive long-term economic growth.