Sangha Renewables has broken ground on a 19.9-megawatt (MW) Bitcoin mining data center in West Texas, marking a significant step forward in its mission to link cryptocurrency production directly to renewable energy sources.

The mining facility will be powered entirely by a large-scale solar farm through a behind-the-meter setup. This configuration allows the operation to pull electricity directly from the renewable energy source without relying on the local utility grid—a strategy that can reduce energy costs and avoid grid congestion.

Set on a 5.5-acre site already home to a long-operational solar installation, the project is scheduled to begin operations in the third quarter of 2025. Though Sangha did not provide further technical specifics, the land's existing infrastructure could streamline development and lower capital expenditure.

To help finance the buildout, the company recently secured $14 million in equity funding, which will directly support construction and site development. The investment represents a strong vote of confidence in Sangha’s energy-fintech hybrid business model.

Sangha is positioning this project as a “proof-of-concept” for what it describes as an “innovative model” that combines Bitcoin mining with independent power producers (IPPs). This model has attracted attention across the crypto industry as a more sustainable and cost-efficient method of mining digital assets.

“By applying a project finance structure honed in the renewable energy and real estate sectors, we enable investors to participate directly in productive assets—without intermediaries, speculative equities, or inefficiencies of datacenter hosting,” said Spencer Marr, co-founder and CEO of Sangha Renewables.

The model is also designed to appeal to accredited investors, allowing them to directly invest in energy infrastructure and receive cryptocurrency as returns. These distributions are executed via blockchain-based smart contracts, aligning investor payouts with real-time Bitcoin production performance.

“Investors put cash or Bitcoin into the construction of the project and then enjoy streaming distributions of Bitcoin for years to come at well below the market price of Bitcoin,” added Marr.

Sangha argues that its approach not only benefits investors but also contributes positively to the energy grid. By shifting energy use away from peak times and stabilizing load during fluctuations, the operation could serve as a responsive asset within Texas's volatile electricity market.

“It’s a win-win-win,” said Marr. “The IPP earns more per megawatt-hour, our investors gain exposure to low-cost Bitcoin production, and we deliver grid-stabilizing load where it’s needed most.”

Founded in 2018 under the name Sangha Systems, the firm has grown from a small sustainability-focused startup into an infrastructure innovator with a reported 100MW+ portfolio of solar and wind assets prepared for direct offtake. Its previous project, the 82 River North mine in Hennepin, Illinois, was proposed to use a similar behind-the-meter setup at a repurposed steel mill location.

As the crypto mining industry faces increasing scrutiny over energy use, Sangha’s approach could offer a blueprint for more responsible, decentralized, and cost-effective digital asset infrastructure—one powered by clean energy and shaped by direct investor involvement.

Originally reported by Greg Thomson in Data Center Dynamics.