Crypto mining strains Iran’s power grid, threatens summer blackouts

Shafaq News/ Iran’s power grid is under severe strain as illegal cryptocurrency mining surges, consuming electricity at levels that could soon trigger widespread blackouts, a top energy official warned.

Mohammad Allahdad, Deputy Director of Transportation and Foreign Trade at Tavanir, the national electricity company, reported that authorities confiscated over 5,000 unauthorized mining machines in May alone. These operations, he estimated, are drawing more than 4,000 megawatts—four times the output of the Bushehr nuclear power plant.

“That’s enough power to supply several provinces,” Allahdad told state media, noting that underground rigs now consume more than 2,500 megawatts—equivalent to 250,000 machines.

He also cautioned that with summer demand spiking, Iran may be forced to impose rolling blackouts to preserve power for hospitals and critical infrastructure. “Residential areas could be the first hit if illegal usage isn’t curtailed.”

Beyond grid stress, Allahdad flagged growing safety risks, stating that many rigs are hidden in homes, barns, and workshops, where the heat from constant mining has led to equipment failures, fires, and health complaints.

This is a public safety issue, he stressed, urging deeper coordination between security forces and regulators to tighten oversight. “The persistence of these activities highlights gaps in enforcement. Without stronger controls, the grid won’t withstand peak demand in the months ahead.”