Mining firm Hut 8 has finalized an agreement to purchase electricity for a site in Texas, granting immediate access to land and a capacity of 205 MW.
Hut 8 has executed definitive agreements for a 205 MW greenfield site in West Texas, expanding our energy infrastructure platform to approximately 1.3 gigawatts.
This transaction marks several firsts, including:
— The first transaction to convert from our previously announced… pic.twitter.com/x5YRLVDxtL— Hut 8 (@Hut8Corp) July 9, 2024
“For the first time, a large data center load has been approved under a complex regulatory framework in this particular market,” commented Hut 8 CEO Asher Genut.
According to him, the deal required resolving a number of “commercial, legal, and regulatory nuances for each of the stakeholders.”
The company noted that the site is located near a wind farm and is connected to the ERCOT operator’s grid. This provides access to the local wholesale electricity market with the lowest prices in North America.
The site has an existing substation, and work is currently underway on the design and construction of a new data center.
“The facility is well-positioned to support high-performance computing, including bitcoin mining and AI. Hut 8 is finalizing the commercialization plan for the site to maximize its value,” the company stated.
It is anticipated that upon completion of the deal, the total capacity owned or managed by Hut 8 will reach 1.3 GW.
The company’s expansion follows the raising of $150 million from Coatue Management to develop infrastructure.
Earlier, Upstream Data stated that after the April halving, miners began “survival games.”
Experts at CryptoQuant noted a reduction in bitcoin reserves held by cryptocurrency miners and suggested their potential capitulation.