Denton moves forward with groundbreaking Bitcoin data center project

In a recent government meeting, officials discussed the approval of a new modular data center project in Denton, Texas, aimed at enhancing the city's economic development and energy capacity. The project, which has been in negotiation for the past 12 to 15 months, involves a 20-megawatt high-speed computing facility, primarily focused on Bitcoin operations.

The proposed site is strategically located within the airport industrial park, adjacent to a substation with available capacity. This location is surrounded by significant businesses, including Peterbilt, Tetra Pak, and WinCo Distribution Center. The data center will occupy approximately four acres and is designed to comply with the city's noise and vibration regulations, ensuring sound levels do not exceed 60 decibels.

City officials highlighted the project's potential benefits, estimating a net income of approximately $2.8 million for Denton Municipal Electric (DME) over the first five years, alongside an anticipated revenue of over $5 million for the city during the same period. The project includes a 10-year lease and power purchase agreement (PPA), with an option for renewal, and a market-based lease rate of $20,000 annually.

The recommendation to award the bid to Waha and approve the associated ordinance and lease for SPRE Denton, Texas LLC is set to move forward, with construction expected to commence in early fall following the completion of the development review process. This initiative is seen as a significant step in attracting new investment and supporting high electric usage businesses in the community.