Tether confirmed to the Ministry of Labor of Uruguay that it will cease operations locally

According to Elobservador, Tether Holdings Ltd. has confirmed to the Ministry of Labor and Social Security of Uruguay (MTSS) that it will cease operations in Uruguay and lay off 30 out of 38 employees. Since entering Uruguay, Tether has planned to invest $500 million, including building three data processing centers in Florida and Tacuarembó, which are expected to consume 165 megawatts of power; it also plans to construct a wind and solar power generation park with a capacity of 300 megawatts. Of the total investment, over $100 million has been secured, with an additional $50 million allocated for infrastructure development, which will be owned by the Uruguayan Electric Company (UTE) and the national interconnected system.

The company warned that under current conditions, the continuation of the project is economically unfeasible. The 31.5 kV transmission contract model adopted in Florida and the increased costs have raised operational expenses, although Tether has repeatedly requested more competitive electricity pricing since November 2023. In the proposed alternative, the company suggested switching to a 150 kV transmission fee and modifying the electricity procurement contract, which could bring economic benefits to the Uruguayan Electric Company and avoid unnecessary projects.