DALLAS – Texas is among the most popular destinations in the U.S. for bitcoin mining. However, earlier this June, the state’s grid operator, the Electric Reliability Council of Texas (ERCOT), raised alarm about the state's growing demand for electricity. It projected that demand could almost double by 2030 from booming population growth, severe temperature fluctuations during summer and winter months, and a dramatic upsurge in artificial intelligence (AI) data centers and crypto mines across Texas.

The latter point is particularly concerning for lawmakers worried about crypto mines' excessive energy usage, seldom expressed in Texas’ famously deregulated energy market. While government officials typically side with big industry players in the state, these nascent technologies spurred some conservative lawmakers at a senate committee meeting earlier this year to question the impact of mining on the energy grid. Among lawmakers’ chief grievances were the paucity of jobs generated by bitcoin mines in Texas, as well as their climbing power usage.

According to testimony from ERCOT CEO Pablo Vegas, the state’s growing energy demand will require 65,000 extra megawatts to accommodate new players, with half of that demand stemming from AI data centers and crypto mines.

The news elicited a rare rebuke from government officials. “Texans will ultimately pay the price,” lieutenant-governor Dan Patrick wrote. “We want data centers, but it can't be the wild, wild west of data centers and crypto miners crashing our grid and turning the lights off."

Texas is not the only jurisdiction in the U.S. grappling with high power consumption from crypto or AI. In Santa Clara, California, 60% of electricity is now used by AI data centers, and residents are suffering from electricity price hikes as the city struggles to build relevant infrastructure and transmission lines. Similarly, in an idyllic corner of upstate New York, bitcoin miners’ high energy consumption prompted a local utility to purchase energy on spot markets to cover increased demand, leading to an increase in power bills for local citizens.

In Texas, government officials are looking to circumvent both scenarios. After the senate committee meeting this June, lieutenant-governor Patrick exhorted the state to examine energy usage from both AI and crypto. “We need to take a close look at those two industries,” he said. “They produce very few jobs compared to the incredible demands they place on our grid. Crypto mining may actually make more money selling electricity back to the grid than from their crypto mining operations.”