Mexican authorities have dismantled a large-scale cryptocurrency mining facility in Tlaola, a municipality in Puebla’s northern highlands, following an investigation into suspected electricity theft from infrastructure linked to a federal hydroelectric plant.
Mining farm uncovered near hydroelectric dam
Officials detected the clandestine mining operation after receiving reports of unusual activity near the Nuevo Necaxa hydroelectric dam. Investigative teams found the facility illegally tapping into the dam’s infrastructure to access substantial amounts of electricity critical for operating crypto mining machines.
The raid led to the seizure of about 300 specialized computers used in cryptocurrency mining, as well as transformers, medium-voltage equipment, and satellite internet antennas. Authorities noted that this level of equipment requires massive power consumption, which contributed to the investigation and subsequent discovery.
The authorities seized transformers, medium-voltage equipment, nearly 300 computing units, and operational satellite internet antennas from the illegal facility in Tlaola, citing concerns over the scale of electricity theft.
Authorities pointed out that the significant noise and electricity demands of crypto mining often push operators toward remote or secluded locations, such as the rural area near the dam.
Investigations expand across the region
Investigators are now working to determine whether similar illegal mining operations exist in neighboring municipalities and potentially in nearby states. The specific cryptocurrencies being mined at the site remain undetermined, but officials are exploring possible connections to money laundering activities.
EL PAÍS reported that Mexican authorities dismantled three other illegal mining farms in the states of Puebla and Tlaxcala during 2025, indicating an ongoing effort to address the illicit use of energy resources for cryptocurrency mining.
The Nuevo Necaxa hydroelectric dam, which dates back over a century, remains an important part of Mexico’s national power grid. Its infrastructure has become a target for these sorts of unauthorized operations due to the high energy requirements of crypto mining.
Mini dictionary: Nuevo Necaxa hydroelectric dam, a historic federal energy facility in Puebla that has served as a key supplier to Mexico’s electricity grid for more than one hundred years and is a vital component of national infrastructure.
Global context of crypto mining electricity theft
Electricity theft linked to cryptocurrency mining remains a significant problem in various countries. Malaysia’s national utility company, Tenaga Nasional, reported losses of roughly $1.11 billion due to illegal mining activities from 2020 through August 2025. The country’s energy ministry highlighted the widespread nature of such operations and the challenges posed by unauthorized consumption.
| Country | Time Period | Reported Loss | Authority/Source |
|---|---|---|---|
| Mexico | 2025 | 4 mining farms dismantled | EL PAÍS, government agencies |
| Malaysia | 2020–Aug 2025 | $1.11 billion | Tenaga Nasional, Energy Ministry |
Similar incidents have been documented in the United States. In Massachusetts, local police discovered an unauthorized crypto mining operation hidden in a crawl space beneath Cohasset Middle/High School. This case exemplified how individuals have attempted to exploit public infrastructure for personal gain through covert mining activities.
Authorities in Mexico emphasized the need for vigilance and coordinated efforts to prevent further electricity theft tied to cryptocurrency mining, stressing the importance of safeguarding vital public infrastructure.
