MEMPHIS, Tenn. — A new crypto mining facility in southeast Memphis recently obtained approval from the board of adjustment and marks another large technological advancement for Memphis in what local leaders are intending to call the tech hub of the South.
Cryptocurrency and mining can be confusing for some as the concept is still fairly new and evolving daily. These mining facilities use hundreds of computers and high-tech equipment with the purpose of solving hashes and discovering or earning new crypto coins.
According to Freeman Law, these mining facilities allow for new cryptocurrency to come in, and through these facilities, transactions are verified and finalized.
Meka Egwuekwe, the Executive Director and Co-Founder of CodeCrew, said this is a great opportunity to further Memphis’ technological expansion.
“For quite some time, lots of us have been rolling up our sleeves in Memphis, trying to build a tech ecosystem that is the perfect coming together of jobs, researchers, education and entrepreneurship. So we've had a lot of momentum in Memphis, especially over the past 10 or 15 years,” Egwuekwe said.
In a 5-0 vote from the Memphis and Shelby County Board of Adjustment in October 2023, Merkle Standard, a California-based digital mining group, was approved to start working on the facility at 4545 South Mendenhall Rd.
A five-year contract between MLGW and Merkle standard went into effect this year, and in the wake of other tech ventures in the area such as xAI’s supercomputer, some environmental groups have expressed concerns over energy and power.
“MLGW, under the leadership of Doug McGowen, will do their due diligence to make sure that this company won't put the citizens of Memphis at risk or cause a strain on our energy grid, and I think that's what's going to happen here,” said JB Smiley, chairman of Memphis City Council. “And just know that the council is going to do everything we can to make sure we're doing our due diligence.”
Egwuekwe said this new facility will also provide a great opportunity for students like the ones he works with to show a new generation the opportunities ahead.
“Memphis not only has the momentum, but has a real opportunity to show the rest of the country how to bring proceed to tech, and at the same time, intersect technology with more and more of the world problems that we need to be addressing.” Egwuekwe said. “Whether it's health, whether it's climate, or whether it is food scarcity.”
The expected monthly fee paid to MLGW will be just under $190,000 for this facility.
Smiley also said that Merkle Standard representatives will be going before them in the coming weeks to present more information about finances and energy and power use as construction is underway.