Texas is one of the largest Bitcoin mining states in the US. However, the state’s crypto miners could now be forced to shut down operations amid a major heat wave that has seen temperatures surpass 100 degrees Fahrenheit. This heat wave is seeing a record-high demand for the state’s energy grid.
Texas crypto miners forced to shut down
On Sunday, the Electric Reliability Council of Texas (ERCOT) announced a need for residents and businesses within the state to conserve electricity as the energy grid has witnessed a “record high electric demand.”
The estimates provided by ERCOT show that the demand for electricity in Texas has been caused by a rise in the use of air conditioners as people cool off their homes amid the rising temperatures. ERCOT also estimates that the rising electricity demand surpasses the supply.
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A prediction model from ERCOT further shows that demand could rise to a record high of 79,615 megawatts (MW). The energy supplier also said that while the state had previously benefited from the abundance of wind and solar energy, the energy generated from wind systems was notably less than what it has historically generated. A capacity of below 8% has been witnessed when the demand was also notably high.
Most of the cryptocurrency mining companies in the state have announced they have lessened their operations, with some even completely shutting down amid increased demand on the state’s energy grid.
One of the leading mining companies based in Texas, Core Scientific, announced it had taken all its ASIC servers in Texas offline. The company said it had decided to ensure that the state residents were offered relief.
A spokesperson from Riot blockchain with a mining facility in Rockdale is shutting down during the summer. The CEO of Argo Blockchain, Peter Wall, said that the company had significantly reduced its operations within Texas. Wall said that because of the high energy demand, crypto mining would have to wait.
Growth of crypto mining in Texas
The announcement by ERCOT comes amid a rise in the number of mining companies setting up their operations in Texas. The state has a friendly regulatory framework, and the energy costs are low.
Last month, Riot Blockchain announced a plan to move its mining rig from New York to Texas. White Rock Management, a crypto mining company based in Switzerland, announced plans to expand into Texas.
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