3 weeks ago
38
TLDR:
- Eskom eyes Bitcoin mining as electricity demand drops and R403B debt mounts.
- Power surplus from renewables could attract crypto miners seeking cheap energy.
- Diesel usage spiked to R4.51B amid outages, prompting urgency for new strategies.
- Municipal debts exceed R90B, worsening Eskom’s cash crisis and pressuring reform.
South Africa’s state power utility Eskom is exploring Bitcoin mining, data centers, and AI infrastructure to tackle rising debt and falling electricity demand.
This shift reflects a broader strategy to utilize excess energy capacity as renewable adoption climbs and private energy generation expands. Eskom sees digital industries as a new source of revenue and job creation. With its R403 billion debt burden and declining electricity sales, the utility is under pressure to reinvent itself.
Leadership is now positioning Bitcoin as a potential solution to turn unused electricity into economic value.
Eskom Seeks New Growth from Bitcoin and AI Demand
According to a report by My Broadband, Eskom CEO Dan Marokane confirmed the shift while addressing the BizNews Conference. He noted the rising electricity needs in countries embracing Bitcoin mining and AI.
He said the utility is assessing how to apply its baseload capacity to support these energy-hungry sectors. As more households and industries generate their own electricity, Eskom must prepare for lower national demand in the coming years.
Marokane warned that demand dropped 4% last year and is forecasted to decline for another three to five years. He emphasized the urgency to adapt Eskom’s business model to prevent further financial strain.
Despite long-term surplus concerns, Eskom’s short-term outlook remains tense. Between June 13 and 19, unplanned outages averaged 15,076 MW, above the threshold that triggers stage 2 load-shedding. To avoid power cuts, Eskom has relied heavily on diesel-powered open-cycle gas turbines.
The utility confirmed that diesel usage doubled year-over-year, reaching R4.51 billion in fuel costs. However, it stated that usage will decline as more generating units return to service.
Bitcoin’s Energy Demand Offers a Strategic Outlet
Bitcoin mining operations could offer a consistent demand source for Eskom’s unused electricity. The utility is examining how mining, data centers, and AI applications, similar to those booming in Texas, can bring in revenue without compromising grid stability.
Bitcoin’s energy-intensive proof-of-work model makes it sensitive to electricity pricing. South Africa’s power surplus could appeal to miners seeking cost-efficient operations.
Crypto analyst @CryptosR_Us noted Eskom’s strategy on X, emphasizing how unused power could now generate jobs and financial relief.
⚡️ NEW: Eskom, South Africa’s state-owned power utility, is exploring support for #Bitcoin mining, AI, and data centers as it grapples with declining demand and a R403 billion (≈ $22.7 b) debt load.
They see $BTC as a way to turn unused energy into growth, jobs, and new… pic.twitter.com/Km0iydUofB
— CryptosRus (@CryptosR_Us) July 2, 2025
Beyond falling sales, Eskom is also contending with unpaid municipal bills. Regulator Nersa revealed that municipalities owe R90 billion, describing the situation as spiraling. Energy Minister Kgosientsho Ramokgopa warned the debt could rise to R3.1 trillion by 2050 if unaddressed.
Amid these challenges, Eskom sees new technologies like Bitcoin and AI as lifelines. The company is working to balance its current power struggles while laying the foundation for a digitally powered recovery.
English (US) ·