Crypto Mining Moratorium in New Brunswick: What It Means for Miners and the Grid 18 Dec
by Danya Henninger - 0 Comments

When New Brunswick put a stop to new cryptocurrency mining operations in 2023, it didn’t just shut down a few data centers-it sent shockwaves through the entire North American mining industry. The province didn’t ask for a pause. It didn’t set a deadline. It issued a full, indefinite ban on electricity connections for any new crypto mining facility. And it’s still in effect today.

Why New Brunswick Said No

New Brunswick’s decision wasn’t made in a vacuum. It was the result of years of growing pressure on the provincial power grid. The province’s electricity provider, NB Power, is a Crown corporation, meaning it’s owned by the people of New Brunswick. Its job isn’t to chase profits-it’s to keep the lights on for homes, hospitals, schools, and small businesses.

By early 2022, crypto mining companies were lining up to connect to the grid. They wanted access to cheap, clean hydroelectric power. But the scale of their requests was staggering. One operator wanted enough electricity to power 100,000 homes. Another wanted twice that. If all the proposed projects had gone through, New Brunswick’s entire electricity demand could have jumped by more than 40% overnight.

That’s not just a numbers game. It’s a real threat to reliability. When you add massive, always-on loads like crypto rigs to a grid designed for steady, predictable usage, you risk blackouts during peak times. And when that happens, it’s not miners who lose power-it’s families, emergency services, and local industries.

So in March 2022, the provincial cabinet ordered NB Power to stop approving any new connections. By November 2023, that pause became a permanent ban. No new mines. No expansions. No exceptions.

What the Ban Actually Covers

This isn’t a vague policy. It’s specific, strict, and enforced at the meter.

  • New operations: Any company trying to set up a Bitcoin, Ethereum, or other Proof-of-Work mining facility in New Brunswick is blocked from getting power.
  • Existing operations: Even if you were already mining there before the ban, you can’t add more rigs or increase your power draw. Growth is frozen.
  • Scope: The ban applies to all energy-intensive mining using Proof-of-Work algorithms-mainly Bitcoin and similar coins. It does not affect blockchain development, node hosting, or non-mining crypto activities.
NB Power doesn’t negotiate. They don’t offer temporary permits. They don’t allow pilot programs. If you show up with a mining rig and ask for a connection, the answer is no-and it’s final.

How This Compares to Other Provinces

Canada has a patchwork of crypto mining rules. New Brunswick stands out because it didn’t just pause-it ended the conversation.

  • Manitoba: Put a moratorium in place in late 2022. It’s still active but expires in April 2026. They’re watching, waiting, and might reopen if grid conditions improve.
  • British Columbia: Passed Bill 24 to give BC Hydro legal power to cap crypto energy use. They’ve won court battles against big miners trying to force more access.
  • Hydro-Québec: Raised rates for miners and capped their total allocation. They’re not banning, but they’re making it expensive.
  • Alberta: The opposite. No restrictions. Low prices. Tax breaks. Miners are moving there in droves.
New Brunswick’s approach is the most final. It’s not about waiting for better tech or cheaper renewables. It’s about saying: our grid isn’t for sale.

A lonely miner beside a closed data center, wildflowers growing around it, with paper cranes flying overhead.

The Bigger Picture: Energy vs. Mining

This isn’t just about crypto. It’s about who gets priority when electricity is limited.

Think about this: In 2025, Canada is pushing hard to electrify everything-cars, heating, public transit. That’s going to need more power. Not less. If you’re using massive amounts of electricity to run computers that just guess numbers to earn coins, you’re competing with real-world needs.

A single large Bitcoin mine can use as much power as a small city. That’s not sustainable. And it’s not fair to residents who are already seeing higher bills.

New Brunswick’s ban reflects a growing global trend. China shut down its entire mining industry in 2021. Kazakhstan cracked down after a 2022 energy crisis. Even some U.S. states like New York and Washington are now imposing limits. The message is clear: crypto mining can’t be allowed to override public energy security.

What Happened to Miners Already in New Brunswick?

Some miners were already operating before the 2022 pause. They were grandfathered in-but only on their existing power levels. No upgrades. No new hardware. No expansion.

That’s created a strange situation. Some facilities are running at full capacity with outdated gear, while others have been forced to scale back. A few have shut down entirely because they couldn’t justify the cost without room to grow.

There’s no compensation. No buyout. No transition plan. If you were mining there, your business is now capped. And if your equipment fails? You can’t replace it with something more efficient unless you can do it without increasing power use-which is nearly impossible.

A train carrying miners at night, heading toward distant lights, watched over by an owl made of electricity.

Where Are Miners Going Now?

The ban didn’t kill mining in Canada-it just moved it.

Alberta is now the top destination. Why? Deregulated energy markets. Low electricity prices. Friendly regulations. Miners are signing long-term deals with private power providers and building huge facilities near oil and gas fields where surplus energy is available.

Other options include Saskatchewan, Ontario (with some restrictions), and the U.S.-especially Texas, where power is cheap and regulators are open to crypto.

The result? A geographic shift. Canada’s mining footprint is shrinking in the east and expanding in the west. And it’s all because one province decided to protect its grid over a speculative industry.

Will the Ban Ever Be Lifted?

No one knows. The provincial government hasn’t signaled any plan to review the ban. There’s no committee. No public consultation. No timeline.

That’s intentional. This isn’t a temporary fix. It’s a policy statement: we value stable power for our citizens more than speculative energy use.

Even if mining tech gets more efficient-say, a new chip that uses half the power-the ban would still stand. Why? Because the core issue isn’t efficiency. It’s scale. Even a more efficient miner still uses more power than a household. And when you add up thousands of them, the demand adds up fast.

The only thing that could change this is if New Brunswick builds massive new power generation-like a new hydro dam or nuclear plant. But there are no plans for that. And even if there were, it would take a decade to build.

So for now, the ban stays.

What This Means for the Future

New Brunswick didn’t just ban mining. It set a new standard.

Other provinces are watching. States in the U.S. are watching. Even countries like Germany and Sweden are debating similar limits. The lesson from New Brunswick is simple: if you control the grid, you control the industry.

It’s not about being anti-crypto. It’s about being pro-stability. Pro-responsibility. Pro-public interest.

For miners, it means one thing: location matters more than ever. You can’t just plug in anywhere. You need to check the rules. You need to understand the grid. You need to know who controls the power-and whether they’re willing to give it to you.

For everyone else, it’s a reminder: energy isn’t infinite. And when a handful of companies want to use it for speculative gains, sometimes the right answer is no.

Is crypto mining completely banned in New Brunswick?

Yes, for new operations and expansions. NB Power cannot provide electricity to any new cryptocurrency mining facility, and existing miners cannot increase their power usage. The ban is indefinite and applies to all Proof-of-Work mining, including Bitcoin.

Why did New Brunswick ban crypto mining but not other industries?

Crypto mining is uniquely energy-intensive and has no direct economic output beyond digital asset creation. Unlike manufacturing, data centers for cloud services, or even electric vehicle charging, mining doesn’t create jobs, goods, or services that benefit the public grid. Its energy use is purely speculative, making it an easy target when the grid is under pressure.

Can I still mine crypto at home in New Brunswick?

Technically, yes-if you’re using a single rig or small setup that doesn’t require a new or upgraded electrical connection. But if you’re planning to install multiple high-wattage rigs that draw significant power, NB Power may require an upgrade, which they will deny under the moratorium. Most home miners avoid the risk entirely.

What’s the environmental impact of this ban?

New Brunswick generates nearly all its electricity from clean sources like hydro and wind. The ban prevents high-carbon mining from using that clean power, which helps preserve the province’s low emissions profile. It also avoids the indirect environmental cost of building new power infrastructure to support mining.

Are there any legal challenges to the ban?

So far, no major lawsuits have succeeded. BC Hydro won a similar case in court, and courts have consistently upheld the right of public utilities to prioritize residential and essential service needs over commercial energy demands that offer no public benefit. Legal challenges are unlikely to succeed unless a miner can prove the ban is discriminatory or unconstitutional-something no court has accepted yet.

Can I move my mining equipment from New Brunswick to Alberta?

Yes. Many miners have done exactly that. Alberta has no restrictions on crypto mining and offers lower electricity rates through private providers. Moving equipment is legal and common, though it comes with logistical and financial costs. Some companies have relocated entire data centers.

Does the ban affect other blockchain applications like DeFi or NFTs?

No. The ban only applies to Proof-of-Work mining that consumes large amounts of electricity. Running a wallet, trading tokens, using DeFi platforms, or hosting NFT marketplaces doesn’t require heavy power use and is unaffected by the moratorium.

What happens if a miner tries to sneak in power without approval?

NB Power actively monitors grid usage and investigates unusual spikes. If a miner is caught bypassing regulations, they face immediate disconnection, fines, and potential legal action. The utility has the authority to cut power without warning if unauthorized use is detected.

Danya Henninger

Danya Henninger

I’m a blockchain analyst and crypto educator based in Perth. I research L1/L2 protocols and token economies, and write practical guides on exchanges and airdrops. I advise startups on on-chain strategy and community incentives. I turn complex concepts into actionable insights for everyday investors.

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