As the state of Texas faces a rapid influx of Bitcoin mining operations, its electrical infrastructure will have to support the industry’s expected 5,000 megawatts (MW) of additional power demands by 2023. The Bitcoin mining industry in Texas currently consumes around 500 to 1,000 MW of power. Texas has been running a campaign to invite bitcoin miners from all over the world to establish themselves in the state.
Bitcoin mining’s demand could increase as much as fivefold by 2023.
According to reports, the Electric Reliability Council of Texas (ERCOT) anticipates that demand could increase as much as fivefold by 2023 and has planned an additional 3,000 to 5,000 MW. This expansion comes as the Lone star state plans to become the home to 20% of the world’s Bitcoin mining operations. Texas emerged as the go-to destination for Bitcoin miners ever since the Chinese government officially banned Bitcoin mining earlier this year. The state government has capitalized on China’s clampdown by making Texas a haven for crypto miners who can now enjoy a 10-year tax abatement, sales tax credits, and state-sponsored workforce training.
Citizens express concerns as they believe the existing power grid cannot be improved.
Some Texas residents, however, are concerned that the existing power grid cannot be improved. ERCOT’s management of the state’s electrical grid came under heavy scrutiny in February 2021 when blackouts plagued the region during an extreme cold snap, leaving about 5 million residents without power for days. A report issued by ERCOT on Nov. 19 has failed to inspire confidence that the grid problems have been fixed.