• Texas has become the home of many crypto miners
  • The state has a regulatory-friendly environment
  • It is also known for its cheap power

Texas' electricity usage may skyrocket as crypto miners in the U.S. state demand more electricity than previously expected by Brad Jones, former chief executive officer of grid operator Electric Reliability Council of Texas (ERCOT).

Crypto miners have applied to connect to the ERCOT power grid and may consume up to 33 gigawatts of electricity, which is quite close to the supply used to power the state of New York, Bloomberg reported over the weekend.

A spokesperson for ERCOT said the grid operator is ready for the increase in electricity demand from crypto miners, but before initiating a connection with the grid, every miner will need approval from the operator.

According to the Texas Blockchain Council, crypto miners currently account for around 1.2 gigawatts of electricity demand in Texas, and as per the outlet, this is enough to power 240,000 homes. Moreover, the report claimed that the number of miners applying for the ERCOT grid access doubled in the last four months alone.

Texas has become the home to many crypto miners due to its regulatory-friendly environment, followed by cheap power and abundant renewable energy.

The price of electricity in Texas is among the cheapest in the United States, averaging about $7.57 in June, which is reportedly a third lower than the national average.

Jones said earlier this year that the grid operator was working with miners to provide the latter electricity to carry out their operations. This would increase demand on the grid by 27 gigawatts by 2026, The Verge reported.

When asked if they want to become a crypto mining hub, Jones said, "Yeah, that's what we are planning," according to Bloomberg.

Russia is one of the world's largest crypto-mining nations, but the activity could soon be banned
Russia is one of the world's largest crypto-mining nations, but the activity could soon be banned AFP / OLGA MALTSEVA