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Texas is hopeful to be recognized as the global center for Bitcoin mining operations. Residents believe that the power grid won't be able to control the load and need to go for alternatives.
The Demand for Texas Bitcoin mining power expected to grow 5 times by 2023
The state of Texas is facing a prompt influx of Bitcoin mining operations. This influx needs to be supported by its electrical infrastructure. Going by the prediction the industry will for sure gain 5,000 megawatts (MW) of additional power demands by 2023.
At present, Texas's Bitcoin mining industry consumes around 500 to 1,000 MW of power. Electric Reliability Council of Texas (ERCOT) expectations show the demand to increase five times by 2023. Thus, ERCOT had already organized an additional 3,000 to 5,000 MW to suffice the purpose.
Soon to become a check-in destination
The expansion in Bitcoin mining power becomes home to 20% of the world's Bitcoin mining operations. Texas is soon expected to emerge as the check-in destination for Bitcoin miners since the Chinese government's prohibition on Bitcoin mining in 2020.
China's limitation has been financed by the state government. How? By making Texas a harbor for crypto miners who can now avail themselves with 10-year tax moderation, sales tax credits, and state-sponsored personnel training.
Worried about power grid capacity
A few Texas dwellers are worried about the existing power grid capacity. In February 2021, ERCOT's executives belonging to the state electrical grid came under heavy inspection. At a time when the region was afflicted with blackouts thereby leaving around 5 million residents without power for days.
According to a report presented on Nov. 19, the Electric Reliability Council of Texas hasn't been able to generate confidence about its grid problems being fixed. According to the seasonal assessment report from ERCOT, the agency has been a failure in modifying its approach to prepare for extremes.