In the remote wilderness of northwestern Zambia, a unique sound echoes through the jungle—not just the roar of the mighty Zambezi River, but the high-frequency hum of bitcoin mining. This is the story of an innovative operation that blends technology, sustainability, and local community impact.
The Sound of Innovation: Inside the Mining Operation
Nestled near the border of the Democratic Republic of Congo, a shipping container houses 120 powerful computers working tirelessly to solve complex equations that verify Bitcoin transactions. In return, the network rewards them with Bitcoin. “That’s the sound of money!” says Philip Walton, describing the constant buzz generated by the machines.
What makes this mining operation extraordinary is its power source. Instead of relying on traditional, often carbon-intensive electricity, these miners tap directly into a nearby hydroelectric station. The Zambezi River’s powerful currents drive massive turbines that generate clean, renewable energy at an exceptionally low cost.
Why Zambia? The Economics of Remote Mining
Philip’s Kenyan company, Gridless, transported these sophisticated mining machines via a 14-hour journey over narrow, bumpy roads from the nearest major city. The effort was justified by the economics: with electricity costs kept minimal, each mining machine generates approximately $5 in daily profit, fluctuating with Bitcoin’s market price.
Even when Bitcoin’s value experiences downturns, the operation remains profitable due to its low energy expenses and strategic partnership with the local energy provider. Philip frequently checks his smartwatch, monitoring the Bitcoin-to-dollar exchange rate, which recently hovered around $80,000.
“We realized that partnering with local power companies and sharing revenue was essential to optimizing mining economics,” Philip explains. “We chose this remote location specifically to access the most cost-effective electricity available.”
Community Impact: More Than Just Mining
The Zengamina hydroelectric station, built in the early 2000s with $3 million in charitable donations, was originally intended to power a local hospital. Daniel Rea, a British-Zambian who took over operations after missionary families initiated the project, now provides electricity to approximately 15,000 residents. However, with slow user growth, the station struggled financially for years.
The bitcoin mining operation transformed this situation. “We were wasting over half of our generated electricity,” Daniel notes. “That meant we couldn’t secure corresponding operational funds. We needed significant power consumers, and Gridless’s partnership changed everything.”
Today, the mining operation contributes about 30% of the station’s revenue, helping maintain low electricity prices for local residents.
Life Before and After Electricity
For the residents of Zengamina, a small town just miles from the power station, Bitcoin economics remains an abstract concept. The community consists of a few dozen huts at a crossroads, where life has been fundamentally transformed by access to electricity.
At the only shop with a refrigerator, children gather around a shared computer, taking turns playing music. Damien, a local barber, received electricity just eighteen months ago. “Before power, I had nothing,” he says. “Now I’ve acquired all my equipment at once.” His shop has become a beacon of light at night, with a TV playing music videos, Christmas lights sparkling, and clippers buzzing as young people gather like moths to a flame.
“Electricity changed my life,” Damien adds. “Now my barbering income pays school fees too.”
For sisters Tumba and Lucy, sitting at the crossroads playing on their phones, the change has been equally profound. “Before electricity, this was just jungle,” they explain. They previously relied on small solar panels but now enjoy refrigeration, television, and mobile connectivity.
Most residents remain unaware of the bitcoin mining operation that helps sustain their power supply—and soon, they’ll witness another container of mining equipment rumbling through town on its way to the next location.
The Future of Mining in Africa
The Zengamina power station has secured significant investment for expansion and connection to the national grid. Once completed, the excess electricity currently consumed by miners will be sold back to the national system, making Bitcoin mining less economically viable at this location.
Philip’s team remains philosophical about this development, viewing it as positive news. They successfully operated for years, both assisting the power station and generating substantial revenue.
Gridless has identified numerous opportunities across Africa where “stranded energy” can be productively utilized. The company currently operates six similar mining facilities across three African countries. North of Zengamina, another operation consumes excess electricity from a hydroelectric station in Congo’s Virunga National Park, with proceeds funding conservation efforts.
The company’s broader ambition involves building its own hydroelectric stations that both mine Bitcoin and provide electricity to rural communities. Co-founder Janet Maingi reveals the company is raising millions for this initiative, focusing on “run-of-the-river” hydro projects similar to Zengamina’s, tapping into Africa’s extensive untapped hydroelectric potential.
“A consumer-driven, adaptive energy model is crucial for achieving scalable, affordable, and sustainable electricity for African communities,” she emphasizes. The company believes Bitcoin mining provides the economic incentive necessary to ensure long-term viability for developers and investors.
Challenges and Considerations
Despite the potential, implementation challenges remain. Some authorities and businesses view Bitcoin mining as a greedy enterprise that competes with citizens for electricity. Gridless maintains that it always prioritizes selling electricity to the highest bidder—which typically means local communities.
Historical examples illustrate the potential conflicts when large-scale mining operations lack proper regulation. During Kazakhstan’s mining boom of 2020-2021, the country’s electricity consumption surged by 7%, ultimately prompting government crackdowns. Even in the United States, now a major Bitcoin mining hub, conflicts between miners and residents during peak usage periods are not uncommon.
Environmental concerns also surround Bitcoin mining, with the global network consuming electricity comparable to a small country like Poland. However, researchers at the University of Cambridge have noted the industry’s shift toward more sustainable energy sources.
While operations like Zengamina represent just a tiny fraction of the global mining landscape, they demonstrate how this controversial industry can create not just digital currency but tangible, positive change.
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Frequently Asked Questions
How does Bitcoin mining work?
Bitcoin mining involves powerful computers solving complex mathematical problems to validate transactions on the blockchain. Successful miners receive newly created Bitcoin as reward for their computational work, which secures the network.
Why is electricity so important for Bitcoin mining?
The mining process requires immense amounts of computational power, which in turn demands significant electricity. Access to cheap, reliable power is therefore the primary factor in determining mining profitability.
What is "stranded energy" in the context of Bitcoin mining?
Stranded energy refers to electricity that is generated but cannot be delivered to consumers due to infrastructure limitations or remote locations. Bitcoin mining operations can utilize this otherwise wasted energy.
How does Bitcoin mining benefit local communities?
In remote areas with limited energy demand, mining operations can provide crucial revenue to power providers, helping maintain infrastructure and keep electricity prices low for local residents.
Is Bitcoin mining environmentally sustainable?
While Bitcoin mining does consume significant energy, many operations are increasingly turning to renewable sources like hydroelectric, solar, and wind power to reduce their environmental impact.
What happens to mining operations when energy prices increase?
Mining profitability is closely tied to energy costs. When electricity prices rise significantly, miners often relocate to areas with cheaper power sources or temporarily pause operations until conditions improve.