According to Mohammad Allahdad, deputy director of power generation, transmission and distribution of Iran’s power company, Tavanir, crypto mining operations are responsible for consuming nearly 2,000 megawatts (MW) of electricity — roughly the output of two Bushehr nuclear reactors.
“While this represents around 5% of total electricity consumption, it accounts for up to 20% of the current power deficit,” Allahdad said on Monday, calling the figure significant and alarming.
During a recent internet outage linked to the conflict with Israel, power consumption nationwide dropped by 2,400 MW, which Tavanir attributes to the shutdown of over 900,000 crypto mining devices operating illegally -- further validating the scale of their impact.
Allahdad’s remarks come amid growing concerns over blackouts, infrastructure strain, and public discontent during the country’s sweltering summer months when electricity demand peaks. Amid blistering summer temperatures, electricity demand from air conditioners, agriculture, and industrial production surges.
Allahdad stressed that using power for crypto mining during high demand days is “not only illegal and unethical, but also harmful,” adding that it risks voltage drops, fuse failures, damage to household appliances, and even fire hazards.
“Crypto mining devices produce intense heat,” he said. “We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes.”
Illegal farms hidden in plain sight
Authorities say abandoned homes, empty shops, warehouses, and industrial buildings are often repurposed for clandestine mining operations. These facilities frequently feature high electricity usage and surveillance cameras, which serve as red flags for investigators.
“Identifying these operations is challenging,” Allahdad said, “especially in large industrial areas. That’s why public cooperation has been crucial.”
To support enforcement efforts, Tavanir launched a public reporting line. Citizens who report illegal operations can receive rewards of up to 200 million tomans (about $2,300).