Greenpeace-backed group fights 86 Texas data centers tied to crypto mining

A Greenpeace-backed activist campaign against a Texas data center project linked to a proof-of-work cryptocurrency is gaining momentum, threatening to stall capacity expansion across the state.

A Greenpeace-backed activist campaign is rallying opposition against a Texas data center project tied to a Bitcoin rival, as community resistance to crypto mining infrastructure spreads across the state and Gov. Greg Abbott moves to curb data center expansion.

"These data centers are taking over Texas, and they threaten our water, our power grid, and our quality of life," Laura Coate, co-chair of DSA Denton, said at a July 16 town hall in Denton.

Texas has 335 existing data centers and 248 planned, according to a June 26 report by the Texas Tribune. In North Texas alone, 86 data centers are in development. The two approved data centers in Denton — from Core Scientific and QumulusAI — will contract enough wattage from the ERCOT grid to power 82,000 homes, exceeding the 57,000 households within city limits, DSA Denton said.

The opposition threatens to slow capacity expansion for proof-of-work mining operations in Texas, which has become a hub for crypto miners drawn to its deregulated power grid. Abbott, seeking a fourth term in November, called for a statewide ban on data center development in rural areas and directed the Public Utility Commission and ERCOT to ensure data centers pay for their own electric infrastructure costs, according to a June 10 letter.

Community Resistance Spreads Across Texas

DSA Denton and Revolutionary Front hosted the town hall at Emily Fowler Central Library to discuss the effects of data centers and a possible moratorium. The Denton City Council is expected to discuss a proposed AI data center moratorium in August, according to Mayor Pro Tem Nick Stevens.

Riley Quinn from Revolutionary Front and DSA Denton said the organizations have a working group addressing the explosion of AI data centers in Texas with other local groups, including Cooperation Denton and the Denton County Green Party. The groups highlighted impacts including noise pollution from diesel generators and cooling systems, millions of gallons of fresh water needed for cooling, and carbon emissions that "nullify Denton's sustainability efforts."

In rural Texas, farmers have expressed fears about what the data center boom means for their land and water resources, while East Texans who moved for peace and quiet now worry the facilities will shatter both.

Abbott Targets Data Center Incentives

Abbott directed the PUC to reduce residential ratepayer transmission costs by July 31 and to require data centers to pay for all of their electric infrastructure costs. The governor also called for repealing sales tax exemptions for data centers, which he described as "outdated or unnecessary incentives."

"Data centers must operate in ways that reduce costs for residential electricity customers, do not drain water needed for our communities and take into consideration the needs of our neighborhoods," Abbott said in a June 10 news release.

The governor said he plans to work with the Legislature next session on ensuring data centers add to Texas' electric capacity, "not just its electric demand." For proof-of-work mining operations, the combination of community resistance and regulatory scrutiny threatens to raise operating costs and slow capacity expansion, potentially pushing miners to seek more favorable jurisdictions.

This article is for informational purposes only and does not constitute investment advice.