Tether to Cease Operations in Uruguay Amid Economic Challenges

According to PANews, Tether Holdings Ltd. has confirmed its decision to halt operations in Uruguay, resulting in the layoff of 30 out of 38 employees. Since its entry into Uruguay, Tether had planned a $500 million investment, including the construction of three data processing centers in Florida and Tacuarembó provinces, with an expected power consumption of 165 megawatts. Additionally, the company aimed to develop a wind and solar power park with a capacity of 300 megawatts. Over $100 million of the total investment has been realized, with another $50 million allocated for infrastructure development, which will be owned by Uruguay's state power company UTE and the national interconnected system. The company has warned that under current conditions, continuing the project is economically unfeasible. The 31.5-kilovolt transmission contract model used in Florida province has increased operational costs, despite Tether's repeated applications for more competitive electricity rates since November 2023. In its proposed alternatives, Tether suggested switching to a 150-kilovolt transmission fee and revising the power purchase contract. This proposal could have brought economic benefits to Uruguay's power company and avoided unnecessary engineering work.