The Public Utility Commission (PUC) of Texas has taken the unusual step of suing state Attorney General Ken Paxton in an effort to block the release of cryptocurrency mining data, arguing that public disclosure could endanger the state’s energy grid.
Key Takeaways:
Texas’s utility regulator is suing the state attorney general to block the release of detailed crypto mining data. ERCOT estimates crypto mining already uses as much power as Austin, with far more capacity planned. Lawmakers mandated large mines to register, but the public still lacks access to the filings.The lawsuit, filed in June, challenges a ruling from Paxton’s office that would have required the PUC to release information to reporters from Straight Arrow News and The Texas Tribune.
The journalists had requested details from registration filings under Senate Bill 1929, including facility names, locations, ownership, and power usage.
Texas Crypto Mining Boom Grows, but True Scale Remains Opaque
Texas has emerged as one of the largest cryptocurrency mining hubs in the United States, but the full scale of its operations remains opaque.
In 2024, the Electric Reliability Council of Texas (ERCOT) estimated that crypto mining could already account for around 2,600 megawatts of power demand, roughly equal to the city of Austin’s electricity use on a hot summer day.
Additional projects are on the way: utility giant AEP recently disclosed that cryptocurrency mines with a combined load of 5,000 megawatts are planned in its Texas service area alone.
The state’s electricity demand is projected to nearly double by 2030, with Bitcoin mining a major driver.
While lawmakers passed SB 1929 in 2023 to require large-scale crypto mines, those consuming more than 75 megawatts, to register with the PUC by February 2025, the public has yet to see the detailed information those registrations contain.
After the PUC denied the media requests earlier this year, the journalists appealed to Paxton’s office, which in May largely sided with them.
However, the commission, whose members are appointed by Gov. Greg Abbott, is now seeking a court order to keep the information sealed.
“In the wrong hands, this information could be used by terrorists to plan attacks on Texas’s energy grid and critical infrastructure,” PUC lawyers wrote in a June 27 filing.
Chinese Roots Still Dominate Global Bitcoin Mining
As reported, over half of the world’s Bitcoin mining operations still trace their origins to China, with 55% to 65% of mining linked to Chinese capital, hardware, or expertise, according to Uminers CEO Batyr Hydyrov.
Despite China’s 2021 mining ban, key Chinese players have maintained influence by relocating operations overseas.
Major Chinese manufacturers Bitmain, Canaan, and MicroBT, responsible for 99% of Bitcoin mining hardware, have shifted production to the U.S. to avoid tariffs, helping boost America’s share of Bitcoin’s total hashrate from 4% in 2019 to 38% today.
Hydyrov added that former Chinese miners have often increased capacity after moving abroad, with some expanding by up to 150%, and noted that limited mining still persists within China’s remote regions where enforcement is lax.
Meanwhile, in Iran, officials have raised concerns over the rising strain crypto mining is placing on the nation’s electricity grid, claiming that the activity now contributes to as much as 20% of the country’s energy imbalance.
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