Tether confirms to the Uruguayan Ministry of Labor that it will cease operations in the country.

ChainCatcher News, according to Elobservador, Tether Holdings Ltd. has confirmed to the Ministry of Labor and Social Security (MTSS) of Uruguay that it will cease operations in Uruguay and lay off 30 out of its 38 employees. Since entering Uruguay, Tether had planned to invest $500 million, including building three data processing centers in the departments of Florida and Tacuarembó, with an expected power consumption of 165 megawatts. It also planned to construct a wind and solar power park with an installed capacity of 300 megawatts. Of the total investment, over $100 million has already been implemented, with an additional $50 million allocated for infrastructure construction. These facilities will be owned by the Uruguayan Electricity Company (UTE) and the National Interconnected System.

The company warned that under current conditions, it is economically unfeasible to continue the project. The 31.5 kV power transmission contract model and associated costs adopted in the department of Florida have raised operating expenses, despite Tether having applied multiple times for more competitive electricity pricing schemes since November 2023. In the proposed alternatives, the company suggested switching to a 150 kV transmission fee and amending the power purchase contract. This plan could have brought economic benefits to the Uruguayan Electricity Company and avoided unnecessary engineering works.