Ethiopia Partners with Hong Kong Firm for $250 Million Data Project

The Ethiopian government’s investment arm has inked a significant agreement with a Hong Kong-based data center firm, marking a major move into the realms of data mining and artificial intelligence. The deal, valued at $250 million, involves collaboration with Data Center Service, a branch of the West Data Group, and was officially announced last week. The partnership is poised to launch sophisticated infrastructure projects aimed at advancing data mining and AI training within Ethiopia.

Particularly noteworthy is the inclusion of Bitcoin mining in the venture, as highlighted in recent disclosure. Kal Kassa, the CEO for Ethiopia at Hashlabs Mining, shared on social media platform X that the Ethiopian government plans to engage in Bitcoin mining through this collaboration with Data Center Service. This statement underscores the government’s strategic foray into the lucrative Bitcoin mining sector, leveraging its partnership to harness the potential of digital currencies.

Despite the prohibition of cryptocurrency trading within the country, Ethiopia has allowed mining activities since 2022. Hashlabs Mining, an Indonesian company with mining operations already established in Ethiopia, stands as a testament to the nation’s growing interest and involvement in the cryptocurrency mining industry.

West Data Group, the Hong Kong firm at the center of this partnership, is a blockchain-centric fintech company that launched its first data center in Kentucky in 2017. With additional facilities in Texas, Kazakhstan, Angola, and Kenya, the company has increasingly focused on Bitcoin mining, alongside investments and trading in digital currencies since 2021.