China has recently began tightening restrictions on Bitcoin miners, restricting local bitcoin mining and trading by, among other limitations, ordering power companies not to sell them power.. This crackdown has resulted in Chinese Bitcoin miners to turn elsewhere, even to small towns in rural America. Texas has seen a boom in interest for Bitcoin miners seeking new places to establish their rigs and continue their operations.
Shenzhen-based BIT Mining said in May that it plans to invest more than $25 million in a Texas data center, while Beijing-based server firm Bitmain is already modernizing an old aluminum plant in the Rockdale-area of Texas.
The key factor in this migration from China to Texas includes the allocation of cheap electricity. Mining rigs require large amounts of data and electricity, which are both available in Texas. The Texas power system allows miners to buy up their energy sources upfront, then sell it back at peak value.
This beneficial system has attracted Bitcoin miners in droves.
Although Bitcoin miners are looking to Texas for a lucrative alternative, there are concerns over the impact of energy usage on the state’s infrastructure. Texas does have wind and solar energy sources, but fossil fuel power sources will likely increase the carbon footprint in Texas due to the large quantity of power needed.
To combat this issue, mining operations will need to cut back their power usage during key times, like winter. Substations will also need to be constructed to withstand the new power demands. While power allocation will need to be considered, the Bitcoin industry will undoubtedly offer the chance for towns in rural America to gain a foothold in the growing tech and Bitcoin industry.