Texas poised to build on its blockchain lead Image By EPN Staff Recent industry data indicate Texas holds a commanding national lead – far ahead of Georgia and New York – in cryptocurrency mining operations, affirming previous federal data and fulfilling a prediction Gov. Greg Abbott made barely three years ago. The state is positioned to continue building its lead, with a second Trump administration signaling interest in favorable federal policies, and supportive state legislators exploring new pro-crypto policies, such as House and Senate proposals to establish a state strategic bitcoin reserve and a House proposal to study the General Land Office’s capacity to apply blockchain technology to verify and record land title records. Why it matters The growing value of – and demand for – cryptocurrencies are also drawing attention to potential impacts to public health and the electricity grid, which are poised to shape state policies in Texas and beyond. Texas maintains the national No. 1 rankings for energy production and consumption. But crypto mining facilities’ voracious need for energy risks straining a state grid system grappling to keep pace with projected growth. ERCOT is expected to add more than 20 gigawatts (GW) of contracted large electricity loads by 2028, plus additional organic load growth, according to the North American Electric Reliability Corporation. 10 of the 34 largest cryptocurrency mines in the world are in Texas, according to a New York Times report. One of them, The Times reported, used about the same amount of electricity as the closest 300,000 homes. Riot Platforms, which owns that facility, said it planned to open the world’s largest bitcoin mine in Navarro County, Texas. Lt. Gov. Dan Patrick sounded an alarm last year, saying the state needs to take a close look at both artificial intelligence and crypto mining, which together were expected to generate half the state’s predicted growth in energy demand over the next six years. “They produce very few jobs compared to the incredible demands they place on our grid,” Patrick said. “We want data centers, but it can’t be the Wild, Wild West of data centers and crypto miners crashing our grid and turning the lights off.” The state’s Public Utility Commission recently voted to require large cryptocurrency miners register with regulators. Other impacts Many cryptocurrency mining facilities use large fans to cool their servers as computers work 24/7 to log transactions, raising concerns about noise for surrounding landowners. “Nobody in their right mind would live here,” one neighbor told Inside Climate News. “My windows rattle. The sound goes through my walls. My ears ring, 24/7.” Time Magazine spoke to more than 40 people who reported medical conditions – “hypertension, heart palpitations, chest pain, vertigo, tinnitus, migraines, panic attacks” – that they believe is related to a nearby bitcoin mine. “This thing is definitely causing a tremendous amount of stress,” a local doctor told the magazine. “Everyone is just miserable about it.” The mine owner didn’t answer questions about health impacts, Time reported, but promised to change the facility’s cooling system to cut down on noise. More context The industry says it’s helping Texas’ power grid by turning off machines when demand spikes, as well as using excess energy generated in rural areas, “thereby incentivizing more power generation.” Mining operations can also make money selling power they’ve contracted for, turning off their mining operations when demand is high and selling that power to others. Riot Platforms made $24.2 million reselling power during a hot stretch of August 2023 – more than it made mining and selling Bitcoin.
