Crypto Mining in Texas May Demand 5 Times More Electricity by 2023, ERCOT Predicts

Many Texas residents have linked this energy consuming process of Bitcoin mining to the electricity outages they have to put up with.

By Radhika Parashar | Updated: 23 November 2021 19:03 IST

Crypto Mining in Texas May Demand 5 Times More Electricity by 2023, ERCOT Predicts

Advanced computers used for Bitcoin mining are always kept running and use more power

Highlights

Bitcoin mining is becoming popular in Texas
Two of world’s largest Bitcoin mining centres are coming up in Texas
Residents are worried of overloading power grid

With Bitcoin mining picking up steam in Texas, US, its grid operator Electric Reliability Council of Texas (ERCOT) has foreseen a five-fold increment in energy loads. In the next two years, by 2023, ERCOT predicts that it would have to produce at least up to 5,000MW more electricity to support crypto mining and data centres. The crypto industry is already consuming up to 1,000MW of electricity in Texas, ERCOT officials have revealed to the media during a recent interaction.

Texas emerged as a Bitcoin mining hub after the Chinese government criminalised all crypto-related activities earlier this year. Excessive power consumption in crypto mining was one of the important reasons why China took the drastic measure.

The state offers a 10-year tax abatement, sales tax credits, and state-sponsored workforce training to crypto miners, attracting more of them, a report by Data Center Dynamics said.

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At present, two of the world's largest cryptocurrency mines are under construction in Texas.

The Mayor of Rockdale, Texas, John King, says he even “mines #bitcoin at his home” and welcomes companies to the #Bitcoin friendly city. ???????? pic.twitter.com/JBidQ98q7c
— Documenting Bitcoin ???? (@DocumentingBTC) July 9, 2021

Texas is poised to become the #Bitcoin mining capital of the U.S. as a result of its deregulated electricity landscape, cheap energy costs, and welcoming lawmakers. ????⚡

The #Whinstone mine in Rockdale, TX (pictured) could be capable of producing 500+ Bitcoins per month! pic.twitter.com/XiVMlPBDX9
— Sophia Zaller ???? (@sophiamzaller) July 9, 2021

A number of residents from the state have linked this energy consuming process of Bitcoin mining to the electricity outages they have to put up with.

Is that why we can't keep the power on? It's at least once a week now I'm without power. pic.twitter.com/zSgwNG2N5K
— DiscordiaIII (@DiscordiaI) May 5, 2021

In February 2021, the electricity board of Texas found itself on the receiving end of criticism for mismanaging power supply, leading to blackouts and no heat for days to sustain the winter. Hundreds of people lost their lives during this time due to lack of heat and shortage of food. Even industries were shut down.

At the time, ERCOT had blamed the on extreme weather conditions, which are expected to grow as an issue owing to the anthropogenic climate change.

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Residents of Texas are currently concerned about adding more stress to the already loaded power-grid systems.

As per a research report, cryptocurrency mining hardware is constantly running, hence consuming energy.

Between January 1, 2016, and June 30, 2018, the mining operations for four major cryptocurrencies released up to an estimated 13 million metric tons of carbon dioxide.

In recent times however, several pro-crypto regions are trying to power crypto mining with clean energy resources to decarbonize the process.

For instance, El Salvador is also powering its Bitcoin mining facility using geothermal volcanic energy.

Francis Suarez, the mayor of Miami, has also proposed setting up a Bitcoin-mining facility near a nuclear power plant in Florida. As per a report by Latest News Today, nuclear energy is on the brink of being recognised as a true environmental, social, and corporate governance (ESG) solution in terms of energy.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: Cryptocurrency, Bitcoin Mining, Mining, Cryptocurrency Mining, Texas

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More