Cash News
MEMPHIS, Tenn. (WMC) – Move over xAI, there’s a new energy hog setting up shop in Shelby County.
Crypto mining companies are operating in states all across the country. Now, they’re eyeing Memphis and the state of Tennessee.
The Bluff City is getting its first Bitcoin mining facility, and critics are worried.
Bitcoin–digital currency–requires huge amounts of electricity and water to produce. Memphis’ first data mining facility is under construction in Southeast Memphis at 4545 South Mendenhall in the Capleville area.
Bitcoin mining company Merkle Standard has a contract with MLGW to use 30 to 40 MW of power during off-peak (low demand) times, and 5MW during on-peak (high demand) times.
40MW is enough to power tens of thousands of homes.
“They made a reasonable request,” MLGW CEO Doug McGowen told Action News 5. “As you know, I cannot unreasonably withhold power from a company who asks for it, and there is still capacity in that substation to serve other customers.”
Just like Elon Musk’s xAI Supercomputer being built in Southwest Memphis, local lawmakers and environmental groups worry about crypto mining’s impact on the MLGW power grid and on the environment.
Memphis City Councilman Dr. Jeff Warren believes new laws must be passed at the local, state and federal levels to provide oversight of this growing industry.
”We’re trying to come and see what we can do,” Warren told Action News 5, “that will allow us to have reasonable regulations to make sure that as these things come in, A: they don’t drop the grid but B: they’re the most environmentally friendly possible.”
The Tennessee Chapter of the Sierra Club objected to the crypto mining facility’s application to build here.
“The large demand for electricity,” said Conservation Director Scott Banbury, “will place an enormous burden on MLGW’s ability to supply electricity to all its customers, and likely requires additional generating capacity and subsequent air pollution impacts.”
Merkle Standard, just like xAI, is required to sign contracts with MLGW and join the Demand Response Program, agreeing to power down when the grid is stressed by hot or cold weather or another emergency.
CEO McGowen said MLGW customers will always be the first priority.
“I don’t believe there’s any reason to be concerned,” he said. “We don’t hazard your access to power, and availability of power or the reliability of your power.”
McGowen said MLGW is already supplying 50MW of power to the xAI Supercomputer building right now, but xAI needs 150MW of power.
A TVA spokesperson confirmed xAI and TVA, which supplies MLGW with power, are still negotiating.
If the TVA board greenlights the request, xAI still needs to build its own substation in Memphis.
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