en.Wedoany.com Reported - A city council member in Corpus Christi revealed that a local Bitcoin mine consumes approximately 100,000 gallons of water per day, meeting the city's definition of a "high-volume user." Meanwhile, amid a worsening water crisis, the city government is attempting to withhold the mine's latest water usage records.
According to water department records, the mine consumed 11,563,000 gallons of water between May and August last year, averaging about 127,500 gallons per day, exceeding the city's 100,000-gallon daily threshold for "high-volume users." These records were obtained by local residents through public information requests. The Texas Observer previously reported that the city had installed a new 4-inch water pipe for the mine to facilitate its use of "liquid immersion" technology for cooling computing hardware. City Councilman Roland Barrera stated that city staff informed him the mine's current daily water usage remains around 100,000 gallons, or approximately 3 million gallons per month. In comparison, industrial users such as the city's petrochemical refineries consume up to 90 million gallons per month.
Now, in response to a public information request from the Texas Observer, the city has refused to release the mine's latest 2026 water usage records, citing provisions in the Texas Utilities Code that protect the privacy of individual customer accounts. This marks a departure from last year's practices. The city is appealing this decision to the Texas Attorney General's Office. The Attorney General has 45 business days to either uphold or overturn the city's decision to withhold the records.
The city has previously handled similar confidentiality requests. In February, the city refused to provide water usage data for a commercial car wash, and the Attorney General upheld that decision, citing the city's use of an advanced metering system for the business. Citing this precedent, the city argues in the mine's case that it needs written consent from the mine operator to disclose information, based on a statute originally intended to protect residents' privacy.
City Councilwoman Sylvia Campos expressed dissatisfaction with the withholding of information. She noted that the city's water crisis has become a focal point. Forecasts indicate that without additional rainfall or water sources, the city's water demand could exceed supply as early as next summer. Since December 2024, residents have been under water restrictions, with activities such as lawn watering and car washing regulated. The next phase, which could begin as early as December, would mandate a 25% reduction in water usage for both residents and businesses.
According to Barrera, the mine, located on a 75-acre site outside the city's northwestern boundary, would also be subject to these restrictions. The project developer had previously entered into an Industrial District Agreement (IDA) with the city, promising to "de-annex" the property in exchange, exempting the developer from paying over $70.5 million in royalty fees and electricity sales taxes. However, following the collapse of the FTX exchange in 2022, the project was scaled back, ultimately resulting in only one mine being developed on the site. Peak Mining, a Virginia-based company, acquired the project in December 2023. The IDA was subsequently renegotiated in 2024, eliminating the primary revenue source: personal property taxes on servers and related hardware. According to records, from February 7, 2023, to January 8, 2025, the mine operator paid the city only $2,639 in lieu of taxes.
Latest records show that the city issued an invoice for $1,631.65 to the mine operator in November 2025, which the operator paid on March 6 of the following year for $1,647.97, well past the due date. The operator paid only $16.48 in April. Additionally, according to a statement from city Communications Director Elisa Olson, the operator also owes a $100,000 payment. However, the mine operator paid nearly $1 million in property taxes to Nueces County in January.
Facing the water crisis and revenue shortfall, Barrera is considering asking the city council to terminate the mine's 2024 IDA before its expiration in 2039. Campos also believes the agreement needs to be reexamined. Meanwhile, Governor Greg Abbott has proposed several regulatory measures, including repealing sales tax exemptions for data centers and crypto mines, and requiring these facilities to adopt more efficient closed-loop water systems and report their usage. Sierra Club volunteer Ellie McKay is calling on the city council to take action to re-annex the mine's land.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
