Nearly everything is about energy in the crypto mining industry, Energy is one of the main point of conflict. Energy is also one of the biggest node of conflict in europe, the spectacular nord stream blast attesting that.
Data centers energy consumption is growing and growing and growing, the software and IT sector is now an energy intensive industry with a huge need for energy to the point that a tech company like google is partenering with KAIROS POWER, a small modular nuclear reactors developer through a PPA power purchase agreement to deploy 500MW by 2035.
Crypto Mining companies by power in megawatt
| Company | Power in MW |
|---|---|
| core scientific inc | 1,198 |
| riot platforms, inc | 1,100 |
| bitdeer technologies group | 896 |
| Hut 8 mining | 654 |
| Marathon digital holdings, inc | 640 |
| bitfufu inc | 515 |
| cleanspark inc | 290 |
| Iris energy Ltd | 260 |
| bitfarms | 240 |
| TeraWulf inc | 165 |
| greenidge generation holdings inc | 112 |
| Bit Digital Inc. | 90 |
| BIT Mining Ltd | 83 |
| soluna holdings inc | 75 |
| griid infrastructure inc | 59 |
| gryphon digital mining inc | 25 |
| Argo Blockchain plc | 15 |
| Cathedra Bitcoin inc | 3 |
Crypto Mining power by country in megawattry
| Country | Power in MW |
|---|---|
| usa | 5,699 |
| Canada | 488 |
| Australia | 160 |
| Norway | 134 |
| Bhutan | 100 |
| Argentina | 54 |
| UAE | 25 |
| Paraguay | 14 |
| iceland | 11 |
Crypto Mining power by State in megawatt
| State | Power in MW |
|---|---|
| texas | 3,410 |
| Georgia | 435 |
| North Dakota | 431 |
| New york | 368 |
| North carolina | 206 |
| Kentucky | 179 |
| South carolina | 147 |
| Tennessee | 132 |
| Montana | 103 |
| Oklahoma | 100 |
| Ohio | 83 |
| Pennsylvania | 50 |
| Washington | 34 |
| Nebraska | 12 |
Where to locate a crypto mining data center?
There’s limted and few places in the world where energy is abundant at a low cost and with reasonable risks, this restrict miners ability to choose a geographic location. the best site to locate a crypo mining data center is a place that is note exposed to extreme weather risks like:
- - storm,
- - severe heat,
- - fires,
- - hurricanes,
- - floods,
- - earthquakes.
Those events can disrupte power supplies for days or increase electricity prices and the cost of crypto production.
Texas has access to divers sources of energy:
- - petroleum,
- - natural gas,
- - coal,
- - nuclear,
- - solar,
- - wind,
Texas abundant electric energy can be explained by the large number of natural gas power plants, this dependance on natural gas as a market commodity is what is driving electricity price fluctuations.
The diversity of energy sources in Texas coupled with :
- - the environmental and technical constraints for each type of power plant,
- - a deregulated market where the price of electricity depends on demand and supply,
Need planification and specialized management. ERCOT (The electric reliability council of texas) is the organization that operates texas electrical grid and performs financial settlement for the wholesale bulk-power market.
Crypto Mining power by State in megawatt
Power curtailment credits in $M
The table below summarize the amounts of power credits for 4 companies with mining sites located in texas
| Company | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|
| Argo Blockchain plc | 7.163 | |||
| Iris energy Ltd | 2.078 | |||
| riot platforms, inc | 71.215 | 27.345 | 6.514 | |
| soluna holdings inc | 0.268 |
Wind and solar energy are by far the dominant sources of energy in the panhandle region in Texas and increasing share of green energy in an energy portfolio create a surplus energy production due to seasonal peak in solar and wind energy, crypto mining can help balance supply and demand in the power grid and increase integration of renewable energy into the grid and that's why texas ERCOT worked to attract miners to locate their mining sites in the state through the renewable energy credit program.
Technicaly speaking it’s not clear if the crypto mining is contributing positively or negatively to climate change, maybe the sector is helping build capacity that could help increase sustainable green energy consumption. Because renewable energy generate energy waste and Crypo mining has an insatiable appetite for energy, it's clear that a crypto renewable vertical integration is possible.
politics
mining site are also subject to local political debat about the cost of energy for local residents and job creation. All of this turn into possible regulation that can reduce crypto mining companies operational and financial performance, simply go out of business or relocate elsewhere where energy is available.
Top 10 Crypto Mining power by City in megawattry
| City | Power in MW |
|---|---|
| Rockdale | 1,277 |
| Navaro | 400 |
| McCarney | 356 |
| Denton | 297 |
| Pecos | 253 |
| Dalton | 215 |
| Odessa | 207 |
| Ellendale | 180 |
| Calvert city | 150 |
| Sandersville | 150 |
Natural gas market exposure
crypto mining profitability is very depedant on energy trading and there is a clear need for energy cost and price optimization, many power plants in texas use natural gas which is a commodity subject to global market fluctuations.
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