Denton Municipal Electric in talks with mysterious crypto mining operation about setting up shop

Several crypto mining facilities have approached Denton Municipal Electric, apparently wanting to follow in the footsteps of Core Scientific.

In a presentation slated for Tuesday, Bill Shepherd, executive manager of business services for DME, doesn’t name the crypto mining companies but did mention that they have been negotiating a lease with a crypto mining facility simply referred to as the “top runner” for 12 months.

It would be a five-year lease with a five-year renewal option.

On Tuesday afternoon, DME will be holding a work session with the Denton City Council to discuss the next steps to finalize and get authorization for the lease. The property location would require a zoning change.

DME spokesperson Stuart Birdseye was unable to get the name of the crypto mining companies Friday evening after the city’s weekly staff report to the City Council posted online at 5 p.m.

According to the report from staff, the crypto mining facility will be a “modular data center” with high-speed computing for bitcoin mining at 20 megawatts.

DME claims it is a direct benefit to Denton because it aligns with the city’s economic development plan and will offer an estimated net income of $2.5 million over the next five years, assuming that the facility opens April 1.

Estimated revenue in other fees, such as the franchise fees, is $4.8 million over five years, according to Shepherd’s presentation.

There was no mention of mitigating noise pollution from large data centers — an issue that has become a community concern in Hood County.

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