Cryptocurrency mining facility coming to Memphis
MEMPHIS, Tenn. — Another data center will soon call Memphis home.
A cryptocurrency mining facility is currently under construction on South Mendenhall near Shelby Drive.
With the ongoing construction comes questions about MLGW’s agreement to provide energy for a process that requires large amounts of power to run.
“There is definitely that concern, that worry because it takes a lot of power,” said Memphis City Councilman Dr. Jeff Warren.
Councilman Warren spoke with WREG after Merkle Standard, a California-based digital mining group, got the go-ahead to build a crypto-mining facility in Southeast Memphis.
“The issue with all these data centers whether they be bitcoin mining or AI centers is what they do to the local power grid,” Warren said.
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Councilman Warren referenced Elon Musk’s Super Computer in Southwest Memphis and the massive amounts of power required for operation.
MLGW has reportedly signed a five-year contract with Merkle Standard to provide 45 megawatts during low-demand times. During times of high energy demand, the supply will be cut back to five megawatts.
“I think they’ll be the first to go out of the system to make sure we don’t gray out or have other people have to have rolling blackouts,” Warren said.
Construction on South Mendenhall is mostly shrouded from view with a number of metal container buildings to house data processing systems.
While Councilman Warren wants to see these data centers using solar power and renewable energy, he said he also wants zoning changes that allow for more oversight.
“We don’t have those (oversights) yet,” Warren said. “We don’t have them on a local level. We don’t have them on a state level and we don’t have them on a national level.”
MLGW will reportedly be paid a monthly fee of nearly $190,000 by Merkle Standard.
Neither MLGW nor Merkle Standard have responded to WREG’s request for more information regarding power supply and consumption at the Southeast Memphis facility.
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