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With the Landon Winter Storm expected to hit parts of Texas this week, major crypto mining companies are powering down in anticipation of high demand on the state's power grid.
Talk to cointelegraph on wednesday, the director of communications of riot blockchain trystine payfer said that the company's data centre in rockdale had already "99% of [its] current power cut" since the start of cuts on tuesday, demand on the grid is expected to peak on thursday night. In addition, Bitcoin (BTC) mining firms with representation in the Texas Blockchain Council sent a letter to Texas Governor Greg Abbott informing him they planned to shut down or reduce operations in response to ERCOT’s needs.
“as texans, we want you to know that we are actively watching the cold front ahead, as we would for any seasonal weather occurrence," said texas blockchain vice president reed clay in the letter to abbott shared with cointelegraph. "as well, we are taking proactive steps to stop operations, unload the load and build additional capacity to meet Ercot's needs if necessary."
I urge all Texans to keep a close watch on weather conditions.https://t.co/KMmmdSbIdB
— Greg Abbott (@GregAbbott_TX) February 1, 2022
According to Payfer, Texas's major miners use an estimated gigawatt for operations under normal conditions, permissible with the state's power grid. According to ercot's website, Texans are using 35,016 megawatts, or mw, at the time of publication, with the company stating that there is "enough power for current demand." However, ERCOT’s forecast shows this demand could increase more than ??42% in the next 24 hours, peaking at 49,786 MW when temperatures drop to their lowest: roughly -8 C in Dallas.
The letter for confirmation added:
Just as important as the positive market signals we send to generators is our unique ability to immediately unload the load when ERCOT requires it. This type of request response has always been and should remain a powerful tool in any grid management strategy."
In 2021, millions of texans have gone through days without electricity like a once-in-a-decade winter storm that has not only increased demand on the grid operated by the electric reliability council of texas, or ERCOT, but close numerous power plants, has frozen generators and otherwise interrupted the flow of electricity to many residents who require heat. Despite many crypto mining operations calling Texas home, some experts posited that operations in the state were unlikely to have contributed to the power outages.
"I don't know whether it will be worse than last year," said Payfer. "I think we look either similar or slightly less depending on what was communicated to us by ERCOT."
Related: Russian region struggles to keep up with Bitcoin mining energy demands
In the last year, many regulators and crypto advocates in Texas have been trying to sell the state as a new start for companies looking for new offices and headquarters. In March 2021, Governor Abbott described himself as a “crypto law proposal supporter,” seemingly encouraging mining firms to set up shop in the state. Lawmakers also passed legislation recognizing cryptocurrencies under Texas commercial law and setting up a blockchain working group.
