Correction: The story was corrected to clarify that Wolf Hollow III would not power the Marathon Digital Bitcoin mine.
A state judge will decide whether environmental regulators should grant a permit for a third Wolf Hollow power plant in rural Hood County that would sit less than a mile from a controversial Bitcoin mine.
The gas-fired plant would generate 300 megawatts of energy to the state's power grid near Granbury, according to owner Constellation Energy.
“Texas’ grid operators’ current forecast predicts power demand is going to double by 2030,” company spokesman Brett Nauman told KERA News in an email. “The new power generation units can serve as a critical backstop during times of extreme heat and cold, providing adequate power supply to the Texas grid.”
The Bitcoin mine sits on a property owned by Constellation, which operates the Wolf Hollow II power plant next to another plant owned by the French company TotalEnergies. Constellation is applying for a permit with the Texas Commission on Environmental Quality to build a third plant, Wolf Hollow III, near its other plant, which powers the mine.
Constellation said the third plant would provide energy to the mine, but rather to the grid during peak demand.
But residents say the expansion will negatively impact the area. They contested the permit before a state judge last week.
“There is a state law that says they have to be protective of health,” resident Daniel Lakey told Judge Katerina DeAngelo at a pre-hearing conference last week. “I do believe that we have enough witnesses that will discuss the health issues that are pertinent to this particular area … and what the addition of a third power plant would do to the people in the area.”
For years residents in Mitchell Bend, an unincorporated neighborhood near Granbury, have complained about noise pollution and health issues they say is being caused by the mine, owned by Marathon Digital Holdings or MARA, and adjacent power plants.
“We suffer with our health, we suffer with our property value loss, we suffer with disruption to our lives and our livestock, and lack of sleep,” said resident Cheryl Shadden, who runs the Facebook group Bitcoin Noise Hood County. “The entire community is just getting sicker and sicker by the minute and nobody seems to care.”
Shadden said loud noises from the current Wolf Hollow II power plant only add to the constant low vibrations of the cooling fans coming from the Bitcoin mine owned by MARA. She and other residents have told KERA they’ve suffered from hearing loss, tinnitus and serious health problems as a result.
The permit application has been through two public comment periods and a public meeting held last fall, according to a TCEQ spokesperson. Residents contested the impact of the new proposed plant on their health and the environment in a TCEQ meeting in February.
“We've cost them a lot of money,” Shadden said.
Nauman said Constellation’s permit application has been “rigorously evaluated” and the plant would meet federal and state environmental standards. He added the new plant will bring jobs to the community, including several permanent positions and 80 temporary construction jobs, providing an economic boost to the area.
“Constellation is committed to being a good neighbor and has a strong track record of supporting Granbury, Hood County and all the communities where we live and work,” Nauman said.
A spokesperson for MARA, the Bitcoin company, told KERA in a written statement that the company has invested more than $1.2 billion at its Texas sites, contributing millions in local tax revenues and supporting schools and nonprofits.
"MARA acquired its Granbury data center, which is in a well-established industrial zone along a busy road, in early 2024," the statement read. "Independent professional sound studies, including one conducted by the Hood County government, have confirmed that MARA’s facility operates well below state and county law noise limits."
The company added that it has invested millions of dollars to enhance the site to a quieter cooling method and other improvements, including completing construction of a sound wall around the facility.
Meanwhile, residents are continuing their push to incorporate Mitchell Bend, a move they say will give them more tools to regulate noise and pollution coming from the Bitcoin plant. An election is scheduled for Nov. 4 after the county accepted a petition to put an incorporation vote on the ballot.
It was the second petition the group submitted; Shadden and other residents allege Marathon Digital Holdings interfered in their original petition, urging Hood County Judge Ron Massingill in a letter to vacate prior approval of the petition.
The group has filed a complaint with the state.
“This is abuse of office. This is a law firm and a business that has no standing in a local election at all,” Shadden said. “They have absolutely no legal standing in an election process at all, period.”
KERA has reached out to Massingill's office and will update this story with any response.
The spokesman for MARA didn't comment directly on the allegations, but said in the statement the company is "aware that a few residents are trying to create a new town in what appears to be an attempt to negatively impact its Granbury facility."
"We are committed to maintaining our health and safety standards at the Granbury data center and being good neighbors," the statement said.
This story was updated on Sept. 2 with a response from Marathon Digital Holdings.
Pablo Arauz Peña is KERA’s growth and infrastructure reporter. Got a tip? Email Pablo at parauzpena@kera.org.
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