Texas Public Utility Commission Sues Attorney General Over Cryptocurrency Mining Data Release
By Keaton Peters, Straight Arrow News — August 11, 2025
The Public Utility Commission (PUC) of Texas has launched a legal battle against Texas Attorney General Ken Paxton, seeking to block the release of data related to the electricity consumption of cryptocurrency mining operations in the state. The dispute arises after The Texas Tribune, along with other news organizations, requested information on the power usage of crypto mining facilities. The PUC argued that disclosing such information could potentially aid terrorists in targeting Texas’ energy infrastructure. When the Attorney General’s office ruled in favor of releasing part of the data, the PUC responded by filing suit in June 2025. ### Texas: A Growing Crypto Mining Hub
Texas has rapidly become a major hub for cryptocurrency mining, especially for Bitcoin, due to its abundant land, favorable tax policies, and robust electric grid. However, the precise scope and impact of the crypto mining industry on Texas’ electric grid have remained uncertain due to a lack of publicly available comprehensive data.
In June 2024, a senior official from the Electric Reliability Council of Texas (ERCOT) estimated that cryptocurrency mining accounts for up to 2,600 megawatts of power consumption—roughly equivalent to the electricity used by the city of Austin on a high-demand day.
Utility companies project continued rapid growth. American Electric Power (AEP), for example, recently revealed plans for an additional 5,000 megawatts of crypto mining capacity within Texas, equivalent to adding the electrical load of Austin twice. With grid peak demand expected to nearly double by 2030, understanding and managing such loads has become a key concern.
Senate Bill 1929 and Subsequent Data Requests
In 2023, the Texas Legislature passed Senate Bill 1929, mandating cryptocurrency mining facilities with electrical loads exceeding 75 megawatts to register with the PUC by February 2025. These registrations include details such as facility names, locations, owners, and electricity consumption.
Journalists from The Texas Tribune and Straight Arrow News submitted public information requests to access these records. However, the PUC denied these requests, citing concerns that releasing the data could compromise state security.
The journalists appealed to the Attorney General’s office. In May 2025, the AG issued a ruling that largely sided with the reporters, determining that the PUC had not sufficiently demonstrated how disclosure could facilitate terrorism.
The PUC’s Legal Argument: Security Risks
Following the AG’s ruling, the PUC filed a lawsuit against Paxton’s office. In legal filings, the commission emphasized the sensitive nature of the information, warning that it could enable terrorists to plan attacks on Texas’ energy grid and critical infrastructure by exploiting knowledge of the exact locations, sizes, and electrical loads of crypto mining facilities.
Ellie Breed, the PUC’s chief press officer, declined to comment on the ongoing litigation.
Assistant Attorney General Blake Brennan, who issued the May ruling, stated that the commission "failed to demonstrate" the requested information revealed specific vulnerabilities that could aid terrorist acts, a judgement that challenged the commission’s claims.
Cryptocurrency Mining’s Role in the Energy Grid
Bitcoin mining is an energy-intensive process critical to validating transactions on the decentralized cryptocurrency network. Mining operations use large fleets of computers to solve complex cryptographic puzzles, a process requiring massive power usage. Miners earn newly minted Bitcoin and transaction fees as rewards for their work.
Cryptocurrency mines are considered "large flexible loads" on the electric grid. While consuming substantial electricity, they can also rapidly reduce or shut down power use when required. Proponents argue this flexibility helps stabilize the grid, especially during peak demand periods.
The Texas Blockchain Council supports this view, noting that Bitcoin mining incentivizes building new energy generation, including renewable sources, and provides demand response capabilities — meaning the grid operator ERCOT can pay mining facilities to temporarily shut down their operations during high demand.
For example, during a 2023 heatwave, ERCOT paid cryptocurrency miner Riot Platforms $31.7 million for shutting down its mining computers, helping to alleviate grid strain.
Divergent Opinions from Experts
Opinions among experts vary regarding the PUC’s withholding of crypto mining data. Joshua Rhodes, a research associate at the University of Texas at Austin, acknowledged potential risks but advocated for transparency to enhance market competition and grid efficiency.
Conversely, Ed Hirs, an energy economist from the University of Houston, dismissed the PUC’s lawsuit as a “ridiculous spectacle” and called for the mining data to be made public, pushing back against the classification of these facilities as critical infrastructure vulnerable to terrorism.
The Broader Debate
Cryptocurrency mining remains a contentious issue in Texas. Supporters highlight its economic benefits and grid stabilization potential. Critics raise concerns about environmental impacts, rising electricity prices, and strain on local communities.
As the legal battle unfolds, the release and public understanding of cryptocurrency mining data could shape future regulatory and energy policy decisions in Texas — a state increasingly central to the evolution of Bitcoin mining in the United States.
This article originally appeared on Straight Arrow News and is reproduced here in collaboration with The Texas Tribune.