Bitcoin Miners Are Flocking to Texas as Grid Operator Warns

Bloomberg reports say that the power demand from crypto mining will increase to around 5,000 MWs in the coming 2-years. Learn about the latest news.

Texas is enthusiastically encouraging Bitcoin miners to settle in the state. Bloomberg reports say that the power demand from crypto mining will increase to around 5,000 MWs in the coming two years, which is almost twice the per annum power demand in Austin (Texas) in comparison to 2020. By next year, the grid in Texas will cater to around 20% of the world’s bitcoin network, up from 8-10% currently. Following the crackdown in China, Texas has become the number one destination in the US for Bitcoin miners. 

The power grid in Austin, which struggles under normal circumstances, is already raising a flag about the imminent blackout in the coming years. After the crackdown started in China this summer, Iran and Kazakhstan have come up as preferred destinations for cryptocurrency miners. These two countries also faced blackouts after the demand for electricity skyrocketed due to the power consumption of mining firms. 

A report by ERCOT (an organization that operates the electric grid in Texas) said that extreme weather could lead to a massive blackout, triggering power outages and creating problems for the grid. They say that the grid in Texas is as poorly prepared for disasters as it was back in February 2021. However, Gov. Greg Abbott and many other politicians have argued that the problems plaguing the power grid back in February have been fixed. 

While stressing the massive surge in power demand in the coming years, Joshua Rhodes (a research associate at the University of Texas) said:

"If they just all came online tomorrow, you’d add a large demand to the ERCOT grid... However, during most of the year, not all our power plants are running all the time. That argument that they’re saying about strengthening the grid really rests on if [miners] are willing to be flexible."