Argo Blockchain’s Texas mining facility could cost up to $2B

CEO Peter Wall has cited Texas’ cheap renewable energy as well as its openness to innovation in new technologies as part of the reason for the construction of the data center.

United Kingdom-based crypto mining company Argo Blockchain’s plans to build an 800-megawatt data center in West Texas could cost anywhere from $1.5 billion to $2 billion.

According to a Friday regulatory filing from Argo, the $2 billion cost estimate for the Helios mining facility built on a 320-acre land plot in Texas was based on “the type of mining machines to be installed in the facility, the mix of owned and hosted machines, the cost of raw materials, labor and power required to construct the facility, the timing of build-out and machine purchase, and other factors.” However, the firm added that this was only an estimate and “future results could differ materially.”

Argo broke ground on the 200 MW crypto mining facility based in Dickens County in July, reporting the site will give the company “access to up to 800 MW of electrical power” for its future operations. Though the mining center doesn’t have a roof yet, the plot of land alone will cost Argo $17.5 million. The company plans to have the facility up and running by mid-2022.

Things are moving quickly in Texas https://t.co/ZQzyeK2e9Y

— Peter Wall (@PeterGWall) November 4, 2021

Peter Wall, the CEO of Argo, has cited Texas’ cheap renewable energy as well as its openness to innovation in new technologies as part of the reason for the construction of the data center. As of August, the company claimed that its crypto operations had become “climate positive” for some classifications of greenhouse gas emissions, part of its plan to eventually become carbon neutral.

Related: Bitcoin mining likely didn’t contribute to Texas’ power outages, says expert

Many Bitcoin (BTC) miners have set up shop in Texas as China continues to crack down on mining operations and the state stands out for its cheap electricity and seemingly crypto-friendly regulations. The state is currently home to Blockcap, Riot Blockchain and others.