Summary:
Bitcoin mine closure brings relief from noise complaints for residents in Stokmarknes.
20% increase in electric bills follows the shutdown, impacting local consumers.
Kryptovault, the mining facility operator, declared bankruptcy in September 2023.
Proposed regulations aim to limit energy-intensive crypto mining in Norway.
Government officials stress the need for socially beneficial data centers over crypto mining.
Norwegian Residents Celebrate Bitcoin Mine Closure
Residents of Stokmarknes in northern Norway are rejoicing after the closure of a local Bitcoin mining facility operated by Kryptovault, which had been a source of noise complaints for more than two years. The mining site, notorious for its loud air-cooling systems, prompted neighbors to liken the noise to a sawmill running 24/7. One resident, Harald Martin Eilertsen, remarked, “We had to close our windows at night just to sleep.”
Despite the relief from the noise, the shutdown has led to an unexpected consequence — a 20% increase in electric bills. Kryptovault, which was the largest customer of local energy provider Noranett, declared bankruptcy in September 2023. With the facility now closed, Noranett is passing the financial burden onto other consumers in the region, resulting in higher electricity costs.
The electric bill surge will take effect as early as next month, according to Noranett’s network manager. This shutdown coincides with proposed regulations introduced by the Norwegian government in April 2024, aimed at curbing the growth of energy-intensive data centers and crypto mining operations.
These regulations, still under deliberation, would require data centers to register their operations, allowing authorities to identify and limit energy-intensive activities like crypto mining. Digitalization Minister Karianne Tung emphasized that Norway aims to attract data centers that enhance national infrastructure rather than deplete energy resources. Energy Minister Terje Aasland stated, “[crypto mining]…is an example of a type of business we do not want in Norway.”
If Prop 93 passes, the cryptocurrency mining industry could face significant setbacks. Increased compliance costs and stricter oversight may reduce profitability and discourage new projects, potentially driving miners to relocate to regions with more lenient regulations. The government's focus on supporting socially beneficial data centers could further limit the energy available for crypto mining.
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