Miami mayor seeks to lure Chinese miners with cheap power

The mayor of Miami, Francis Suarez, hopes to attract miners oppressed by the Chinese government to the city by offering them access to nuclear energy. The mayor said this in an interview with CNBC.

According to Suarez, he had not received concrete proposals from Chinese mining firms, but he believes cheap electricity will prompt them to relocate their operations.

“We want to make sure our city can compete. We have spoken with many companies and simply told them: ‘Hey, we want to see you here,’” the mayor said.

The official noted that he has been a cryptocurrency advocate for many years. He invested in Bitcoin and Ethereum, having concluded that the US Senate-approved $1.9 trillion economic rescue plan would lead to inflation.

The mayor also emphasized the city’s reliance on a nuclear plant, which he regards as a source of clean and affordable energy.

According to data from the U.S. Energy Information Administration, the Turkey Point nuclear facility lies within an hour’s drive of Miami. CNBC reports that the average electricity price in the metro area is about $0.10 per kWh, versus a national average near $0.13.

The mayor said he is in talks with Florida Power & Light to determine whether further tariff reductions are possible.

“We understand how important this is. Miners want to come in at a specific price per kilowatt-hour. So we are working on this,” said Suarez.

The official added that he is considering a range of other incentives for cryptocurrency-mining companies, including the creation of special zones whose residents would be eligible for tax breaks and other benefits.

The mayor is confident that the city has the capacity to meet miners’ needs and that the power grid can handle the required load. But he noted that there remains much to be done.

“We were among the first cities in the world to have data centers, and mining hubs are very similar to them. The construction process for these facilities is also similar. This is not something that happens overnight,” the official said.

Miami is one of the most crypto-friendly cities in the United States. In December 2020, Suarez said officials would consider investments of 1% of municipal budget reserves in Bitcoin.

In January 2021, the Miami mayor announced the formation of a task force to develop a plan for greater city involvement in the cryptocurrency industry, and in February the city commission voted to study the integration of Bitcoin into municipal infrastructure.

In the same month, Suarez said he intended to allow city employees to get paid in digital gold. He later announced plans to make Miami a Bitcoin mining hub.

In April, Miami-Dade County Commissioner Koen Higgins announced the formation of a working group to study the possibility of paying taxes in digital assets.