A cryptocurrency mining operation has leased 31 acres of undeveloped land near Denton’s gas-fired power plant. Because most public documents in the transaction refer to the venture solely as a “data centre,” you may have missed it.
Unless special permission is granted, no news releases describing the transaction may be issued under the terms of the agreement. So far, this has not occurred. More information will be provided by the Watchdog.
According to city officials, Denton Municipal Electric customers’ electricity consumption will more than double when the operation begins in the coming months. Every day, that is how much electricity the new facility’s powerful computers and cooling systems consume.
Officials claim it will stabilize rates for all customers while reducing strain on Texas’ vulnerable electric power grid. In the event of a power outage, crypto mining firms can immediately shut down and send unused power to grid operator ERCOT to help replenish the power supply. ERCOT compensates cryptocurrency firms for their assistance.
Core Scientific, headquartered in Bellevue, Washington, prefers to remain unidentified. The company’s public relations firm contacted me after I contacted them to inquire about the publication date of this story. The company refused to answer any questions about the project.
I’m unable to provide you with the financial details of the transaction because sensitive information must be kept private. According to city officials, under state public information law, information about public power utility plants is exempt from disclosure.
The ordinance was approved by the Denton City Council, and leaders signed a complex Power Purchase Agreement, but key details were redacted.
The following has been discovered by the Watchdog: The city and the company came to an agreement that allows the company to conduct crypto mining operations on city property for seven years, with the option to extend for an additional seven.
According to Denton Mayor Gerard Hudspeth, sales could bring in up to $4 million for the city
According to DME general manager Tony Puente, the contract’s additional but unspecified fees will earn the city-owned electricity utility up to $8 million per year.
According to Puente, the funds will be used to repay city loans obtained in the aftermath of the February power outage, which resulted in unusually high energy costs. Customers’ rates, he claims, will not rise as a result of this new agreement.
According to the mayor, the agreement will allow the city to lower its property tax rate, hire more police officers, and fund environmental projects.