California’s Merkle Standard Approved to Build Crypto Mining Facility in Memphis, Raising Energy Consumption Concerns

California-based company Merkle Standard has received approval to build a 45-megawatt (MW) crypto mining facility in Southeast Memphis, Tennessee. The new facility, located on South Mendenhall Road near Shelby Drive, has already sparked concerns among local officials over its massive energy consumption.

Under a five-year contract with utility provider Memphis Light, Gas & Water (MLGW), Merkle Standard will draw up to 45 MW of power during periods of low electricity demand, scaling back to 5 MW during peak times. MLGW is set to receive an $189,000 monthly fee from Merkle Standard, providing a significant revenue boost for the local utility.

However, Memphis City Councilman Dr. Jeff Warren has voiced concerns about the potential strain on the local power grid. He pointed out that such facilities consume enormous amounts of energy, which could impact the city’s power supply, especially considering plans by Elon Musk’s xAI to build the world’s largest supercomputer in Memphis.

Residents and officials are calling for more oversight and the use of renewable energy sources to mitigate potential negative impacts. Construction of the mining facility is already underway, and it is expected to become one of the largest in the region.