Brenham officials discuss cryptocurrency and their ability to sustain energy demands that come with it

BRENHAM, Texas (KBTX) โ€“ The City of Brenham Zoning and Planning Committee has approved a terminology change in its home occupancy ordinance due to cryptocurrency.

According to the city planner, they have been approached by residents and businesses looking to get into cryptocurrency mining in the area, including Garrett Casada. He was approved for mining from his home in the fall of 2021. Married has a full-time job as a homebuilder and uses cryptocurrency mining as a hobby with his son.

in a meeting monday night, the committee said it would not approve any more mining facilities for now. This is due to the electricity required for large-scale commercial installations. Officials said the city's current power grid cannot sustain cryptocurrency mining.

"You have three or four (mining machines) in a neighborhood, all of a sudden you're going to need a substation and more infrastructure, and we just don't have the infrastructure to do that," said urban planner Shauna Laauwe.

Example of a cryptocurrency mining operation. Some operations may include warehouses full of these machines.(MGN)

Casada said these machines require a lot of electricity, but are very cost-effective and could help Brenham adapt to today's technological demands for electricity.

โ€œThese work 24 hours a day, seven days a week. Our 800 amp system here in Brenham runs 40 crypto miners and will probably mine an 800 amp bitcoin once a month,โ€ he said. โ€œWhat's going to happen when everyone has a Tesla in their driveway? What is going to happen when everyone charges their vehicles 24/7?โ€

If others are looking to set up a cryptocurrency mining operation, the city said they may have to be in commercial space or pay higher deposits for electricity. Casada will have acquired rights in any decision that the city makes because it has already been approved. If Casada wants to grow or move her operation, she will have to follow the new rules once they are decided.

Casada said he is happy with the approach of city officials, who are looking for a way to make mining possible for residents.

โ€œIt's a big step for Brenham to say, 'hey, look, we're going to do it, but we're going to plan it out and be efficient at it, that's great,'โ€ he said. โ€œPut us in commercial zones, don't just ban us and that's what a lot of people are trying to do, is ban crypto because they're afraid of it. It comes, it doesn't go."

The terminology changes will be sent to the city council for review in April. These changes include adding definitions of cryptocurrency, commercial mining, and server farms. It also adds electricity to the ordinance's limitations on a home occupancy. Casada said he would be willing to temporarily shut down the operation if the city contacted him in a power grid emergency like the one seen in February 2021.

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