Texas Leaders Worry Bitcoin Mines Will Crash the State Power Grid
Granbury residents are raising alarms over noise from a local Bitcoin mine, while state lawmakers warn that the energy-hungry facilities risk “crashing” the electrical grid.
This story is published in partnership with Inside Climate News, a nonprofit, independent news organization that covers climate, energy, and the environment. Sign up for the ICN newsletter here.
Introduction: Real Concerns of Texans
Can Bitcoin mines really crash the Texas power grid?
If you live in Granbury, Texas, you might be familiar with the constant hum of industrial activity. But recently, this hum has become a roar, thanks to a massive Bitcoin mining facility. Residents and state leaders alike are worried. But why? And what does this mean for the average Texan?
The Noise That Never Sleeps
Imagine trying to sleep with the sound of tens of thousands of computers whirring constantly. That’s the reality for Cheryl Shadden, a 61-year-old nurse who lives with her seven dogs, six horses, six cats, and a parrot.
Ever since a 300-megawatt Bitcoin mining facility opened nearby in 2022, Cheryl’s life has been turned upside down. The noise is relentless, shaking her windows and walls. Her animals are restless, and she’s even suffered permanent hearing loss.
Bitcoin Mining: A Silent Power Drain
Bitcoin mining isn’t just a noise problem.
It’s an energy monster.
Bitcoin, the largest and best-known cryptocurrency, relies on a decentralized network of computers to validate transactions. This process, known as mining, involves running powerful computers around the clock. Each computer guesses at unique codes to verify transactions, consuming vast amounts of electricity.
Texas: A Bitcoin Mining Haven
Texas has become a hotspot for Bitcoin mining due to its low taxes, abundant land, and deregulated energy market. Currently, the state hosts 10 out of the 34 largest Bitcoin mines in the U.S.
But at what cost?
During extreme weather, like Texas’s notorious heatwaves and cold snaps, residents are already asked to conserve power. Now, state lawmakers fear that the surging demand from Bitcoin mines could push the grid to its breaking point.
The Grid Under Siege
State Senator José Menéndez and other lawmakers are sounding the alarm. They estimate the peak demand on the grid will soar from 85,000 megawatts in 2023 to 150,000 megawatts by 2030, driven largely by Bitcoin mining.
Lt. Gov. Dan Patrick put it bluntly: “It can’t be the Wild Wild West of data centers and crypto miners crashing our grid and turning the lights off.”
The Financial Burden on Texans
Cryptocurrency mining currently draws up to 2,600 megawatts from Texas’s grid, equivalent to the power usage of Austin. With more mines set to open, this figure could double.
How does this affect you?
- Higher utility bills: Increased demand means higher prices for everyone.
- Unreliable power: More mines could mean more frequent blackouts during peak demand times.
- Environmental impact: To meet the demand, Texas is turning to natural gas power plants, increasing greenhouse gas emissions.
Gaming the System
Bitcoin mining companies don’t just consume power; they also sell it back to the grid. Companies like Riot Platforms profit from this system, sometimes making more money selling power than mining Bitcoin.
For instance, Riot Platforms made $24.2 million in August 2023 from reselling power, nearly tripling their earnings from Bitcoin mining.
Demand Response Programs
Miners also participate in demand response programs, where they get paid to reduce their power usage during peak times. This allows grid operators to stabilize the grid but at a cost to consumers.
“Texas has set up a system which allows crypto mining to be significantly advantaged,” says State Senator Charles Schwertner.
A Community at Risk
For Granbury residents like Cheryl Shadden, the impact is personal and immediate. Despite Marathon Digital’s phased plan to reduce noise by switching to liquid cooling, the noise persists. Local law enforcement has cited Marathon more than 30 times for noise violations, but significant relief remains elusive.
Health and Environmental Concerns
Residents worry about their health and the environment. The expansion of the nearby Wolf Hollow II power plant to support Bitcoin mining will increase air pollution, releasing an additional 796,000 tons of carbon dioxide per year.
Fighting Back
Granbury residents are pushing back. They’re challenging the power plant expansion, seeking stricter regulations, and demanding accountability from both Marathon Digital and Constellation Energy.
Conclusion: What’s Next for Texas?
As Bitcoin mining continues to grow, the tension between economic benefits and environmental and community impacts will intensify.
Will Texas find a balance, or will the grid—and its residents—pay the price?
Only time will tell.
Photo credit: The Texus Tribune
