The US has largely closed the gap created in the global mining industry at the end of June 2021 by the mining ban in China. Although this is causing more and more criticism of the high power consumption due to the mining of cryptocurrencies such as Bitcoin (BTC), especially in the United States, regulators from the state of Texas are now considering that the industry can also have a promotional effect for renewable energy.
For example, the responsible Texas authority explains in its current newsletter which long-term goals it wants to achieve by locating mining companies. In this context, the authority also clears up any misunderstandings, writing that “in contrast to production facilities for industry and chemistry, which will remain located for much longer,” the power consumption by mining data centers is comparatively low.
Due to the increasing settlement of mining companies in Texas, corresponding criticism had recently arisen that the industry could cause an imbalance between supply and demand in the power grid. One of the main criticisms is that other industries usually maintain their production even in times of crisis, while the capacities of mining data centers depend heavily on the market situation and can be fluctuating. According to Texas researcher Joshua Rhodes:
“The difference is that mining companies are set up quickly and closed just as quickly, depending on how the Bitcoin price is currently.“
However, the Texas authorities are optimistic that the mining industry will also participate in the demand-respond program, which will organize a change in the distribution of electricity in times of particularly high demand. Many other industries also participate in this program in order to be able to provide sufficient energy for the population in certain cases.
In addition, Texas sees a possible symbiosis through crypto mining, because this could favor the construction of additional electricity infrastructure. For example, the power grid in very rural regions of Texas could be expanded by the settlement of mining companies.
