The Bitcoin mining power demand in Texas can increase 5 times high by the year 2023
The Texas state is right now facing a huge surge in Bitcoin mining operations, and the electrical infrastructure of the state needs to keep up with the power demand. The power department of Texas state expects that 5000 megawatts of power will be required to keep up with the industry demand in the year 2023.
The mining industry of Bitcoin currently consumes around 500 to 1000 megawatts of energy in Texas. According to the estimation of The Electric Reliability Council of Texas (ERCOT), the demand for electricity can increase up to five folds by the beginning of 2023. Therefore the plan to increase the energy supply 3000 to 5000MW as provided by the reports.
After the Chinese government put a ban on bitcoin mining, Texas has become the go-to destination of all bitcoin miners all over the world. The state of Lone Star is planning to become the home of the world’s 20 percent bitcoin miners, and this is the sole reason required for the expansion.
The Texas state government has taken full advantage of China’s lockdown on crypto miners and offered them a 10-year tax subsidy with an additional state-sponsored workforce training program and sales tax credits. However, the residents have concerns regarding the existing power grid. According to some of them, the current power grid cannot be upgraded anymore. In February 2021, the residents came across a massive power blackout in extreme cold, and they were not able to use electricity for a few days. The number of residents is close to 5 million in total, and the power management authorities have not been able to gain the confidence of the people.