New York State lawmakers — Senator Liz Krueger and Assembly member @Anna Kelles — have introduced Bill S.8518 / A.9138, a proposal to establish a tiered excise tax on electricity used by Proof-of-Work (PoW) crypto mining.
The intent is clear: to make high-consumption crypto miners contribute more to grid costs and to fund energy affordability programs for residents.
Under the proposed structure, electricity use by PoW facilities would be taxed on a graduated scale:
- 0¢/kWh for up to 2.25 million kWh/year
- Rising to 5¢/kWh for usage above 20 million kWh/year
- Exemption: Off-grid sites fully powered by renewable energy.
If passed, this law would take effect January 1, 2027 — giving operators less than two years to prepare for a new cost layer that could significantly affect profitability.
What It Means
This legislation applies exclusively to crypto mining, not to traditional or hyperscale data centers. However, it runs parallel to Assembly Bill A.9086-A, which introduces broader sustainability and transparency standards for all data-center operations across the state.
Together, these bills mark a decisive shift: energy-intensive computing will be regulated, taxed, and measured for its contribution to both the grid and the community.
The Impact on Mining Operations
For Bitcoin miners, the implications are substantial:
- A 1 MW site (~8.3 M kWh/year) could see costs rise by roughly 1.9¢ per kWh (~$155K annually).
- A 5 MW site might face a 4¢ per kWh increase (~$1.7M annually).
- Larger grid-connected farms (10–25 MW+) could reach the top tier at 5¢ per kWh, translating to $3.7–10 million in added annual costs.
Off-grid or renewable-powered miners remain exempt — a clear incentive for cleaner infrastructure and on-site generation.
Why Crypto Mining Should Be Recognized as “Tier-0” Infrastructure
At GRN Energy, we advocate for recognizing crypto mining as Tier-0 — the foundational layer of the modern data-center ecosystem.
When crypto mining is integrated within the broader data-center classification, it becomes more resilient to fragmented taxation and regulatory attacks — like those we’ve seen in Sweden and now proposed in New York. The real issue isn’t crypto mining itself — it’s unmanaged power demand and the failure to demonstrate local value creation.
Properly designed and integrated, mining operations can deliver measurable benefits to both regional economies and energy infrastructure.
Crypto miners can and should play a vital role as:
- Flexible grid participants— dynamically curtailing load during peak hours to stabilize the grid.
- Investors in local energy infrastructure— financing substations, renewables, and storage that relieve grid congestion.
- Catalysts for regional growth— creating jobs, supporting small businesses, and contributing to tax revenues.
- Early adopters of sustainable technologies — driving renewable integration, efficiency innovation, and circular-energy reuse (such as heat recovery).
By embracing the Tier-0 classification, crypto miners move from being viewed as isolated consumers of energy to being recognized as core contributors to the digital-energy ecosystem — powering the next generation of sustainable, intelligent infrastructure.
The Way Forward
To remain viable, crypto miners must transition from isolated power consumers to active ecosystem contributors.That means:
- Paying sustainable taxes transparently and participating in policy development.
- Investing in renewable and grid-supportive infrastructure.
- Sharing heat, data, and innovation with local communities.
By embracing this proactive stance, the crypto-mining industry can transform from being perceived as a burden on the grid to a strategic partner in digital-energy innovation.
Closing Thought
The proposed New York legislation is not just a tax — it’s a signal. It’s time to evolve from mining to infrastructure, from consumption to contribution.
Contact GRN Energy for advanced long term strategies and how to address changes like stated above.
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