TLDR
- The Public Utility Commission of Texas has filed a lawsuit against Attorney General Ken Paxton to block the release of crypto mining data.
- The lawsuit challenges a ruling from Paxton’s office that ordered the release of facility names, locations, ownership, and electricity usage.
- Journalists from Straight Arrow News and The Texas Tribune had requested the information under Senate Bill 1929.
- The commission claims that releasing the data could allow hostile actors to target the Texas power grid.
- ERCOT estimates that crypto mining accounts for 2,600 megawatts of Texas’s electricity demand, and more projects are on the way.
Texas utility regulators have moved to block the release of sensitive crypto mining records. The Public Utility Commission of Texas (PUC) filed a lawsuit in June against state Attorney General Ken Paxton. The commission said disclosure could threaten the security of Texas’s energy grid.
The lawsuit targets a ruling by Paxton’s office that ordered the PUC to provide data to two news outlets. Reporters from Straight Arrow News and The Texas Tribune had requested details from registrations filed under Senate Bill 1929. These records include facility names, locations, ownership, and electricity usage by large-scale crypto mining operations.
According to the PUC, revealing such data could aid hostile actors in targeting power infrastructure. “In the wrong hands, this information could be used by terrorists,” lawyers wrote in a June 27 filing. The lawsuit asks a court to block Paxton’s ruling and keep the data sealed.
Dispute Over Public Access to Crypto Mining Records
Senate Bill 1929 requires crypto mining facilities consuming more than 75 megawatts to register with the PUC by February 2025. Lawmakers passed the measure in 2023 after concerns over rising energy demand. However, the public has not seen the registration details.
The PUC denied the media request earlier in 2024, prompting the journalists to appeal to Paxton’s office. In May, Paxton sided with the reporters, directing the release of most of the requested data. The PUC then sought judicial intervention.
ERCOT estimated in 2024 that crypto mining already accounted for 2,600 megawatts of Texas’s electricity demand. This figure is roughly equal to Austin’s daily summer usage. Regulators expect additional facilities to come online soon.
Rising Energy Demand from Crypto Mining Operations
Utility company AEP recently reported that planned crypto mining projects in its Texas service area total about 5,000 megawatts. This increase comes as the state’s electricity demand could nearly double by 2030. Officials say crypto mining is a significant driver of this growth.
Industry expansion has accelerated since Chinese miners relocated abroad after Beijing’s 2021 ban. Manufacturers like Bitmain, Canaan, and MicroBT have shifted production to the United States, raising America’s share of global Bitcoin hashrate to 38%.
According to Uminers CEO Batyr Hydyrov, former Chinese miners often increased capacity by up to 150% after moving overseas. He noted that 55% to 65% of global crypto mining remains tied to Chinese capital, hardware, or expertise. Limited mining still occurs in remote Chinese regions with weak enforcement.
In Iran, authorities reported that crypto mining now contributes to about 20% of the nation’s electricity imbalance. Officials there have imposed restrictions to reduce strain on the grid. Similar challenges are appearing in other power-constrained countries.
Texas regulators argue that disclosing detailed facility information could make the grid more vulnerable. They stress the importance of protecting critical infrastructure. The court will decide whether transparency or security takes precedence in this dispute.
