Why Miners Are Massively Relocating to the Kostroma Region
Russia’s crypto-mining geography has shifted dramatically: in Q1 2026, the Kostroma region became the absolute leader in growth of mining farms—four times more than a year earlier. This is more than just a statistic: such relocations reveal how businesses adapt to new regulations and seek stability amid tightening oversight.
From “Where It’s Cheaper” to “Where It’s More Reliable”
In the past, miners chose regions solely based on electricity prices—for example, Siberia or the Far East were popular thanks to cheap hydropower. Today, however, priorities have shifted. As experts explain, large operators increasingly favor Central Russia and the Northwest due to greater predictability: clear rules, mature infrastructure, and proximity to logistics hubs.
The Kostroma region found itself in a strong position: it offers spare capacity in its power grids, stable electricity supply, and relative proximity to Moscow—which simplifies equipment management and maintenance. Unlike overloaded regions where even connecting a single new consumer triggers complications, Kostroma provides a “quiet harbor” for energy-intensive businesses.
Why Some Regions Ban Mining While Others Actively Attract It
Since December 2024, mining has been officially restricted across several Russian federal subjects—especially in the North Caucasus (Dagestan, Chechnya, Ingushetia, etc.) and partially in Buryatia, Zabaykalsky Krai, and Irkutsk Oblast. The reason? Overloaded local power systems, unable to handle the additional strain from thousands of mining rigs.
This triggered a “spillover effect”: companies are forced to relocate capacity to areas with remaining reserves—and where authorities haven’t imposed strict restrictions. As a result:
- Leningrad Oblast: +140% growth
- Tula Oblast: +110% growth
- Moscow Oblast: +89% growth
- Oryol Oblast: +91% growth
- Smolensk and Novgorod Oblasts: ~+50% growth
This redistribution isn’t chaotic flight—it’s a strategic choice. As Mikhail Smirnov of EXMO.me notes, major players no longer operate in a single region but distribute capacity nationwide to minimize risk.
What Lies Behind the Numbers: Legalization and Oversight
Another key factor is strengthened state oversight. After new rules took effect, many miners began formally registering their operations to avoid blocks and fines. This trend is especially visible in regions with a “low baseline”: if Kostroma previously hosted only a handful of farms, even modest inflows of new operators yield impressive percentage growth.
According to Valery Petrov of the RAKIB Expert Council, it’s precisely the combination of legalization and migration from banned zones that’s driving the current surge across Central Russia.
Key Takeaways
- Kostroma Oblast has become the top performer in mining-farm growth—+300% quarter-on-quarter.
- Central Russia and the Northwest are now the primary hubs for industrial-scale mining.
- Restrictions in southern and Far Eastern regions are forcing businesses to redistribute capacity.
- Stable operating conditions matter more than cheap electricity for large operators.
- State oversight is fostering market legalization and transparency.
What Does This Mean for Ordinary People?
Although mining may seem distant from daily life, these shifts affect everyone. First, redistributing capacity reduces the risk of grid failures—meaning fewer household blackouts. Second, legalizing mining can bring new tax revenue and jobs to regions. And finally, stable infrastructure makes the crypto market less volatile—which matters even for those who simply follow the news.
— Editorial Team
