Bitcoin mine that could have 'flattened out' energy bills in Minnesota town halts plans amid potential noise complaints
Quick Take
- Plans for a Bitcoin mine that could have “flattened out” energy bills for residents of a Minnesota town were withdrawn by Revolve Labs amid potential noise complaints.
- The withdrawal follows similar news last week when residents of a Norwegian town faced a 20% energy bill hike after noise complaints led to a local facility being shut down.
Colocation provider Revolve Labs has withdrawn its application for a Bitcoin mining facility outside Windom, a town in rural southwest Minnesota, after residents voiced concerns about the noise and impact on their home values.
The decision came in response to feedback received by the firm, local newspaper The Minnesota Star Tribune reported on Wednesday. “Our commitment is to operate in a way that aligns with community values and priorities, and we recognize that collaboration is essential to achieving this,” Revolve Labs senior operations manager Jeff St. Onge told the outlet.
Revolve Labs, which rebranded from Bit 49 in July 2023, said the facility would have generated $35,000 per month in service fees for the town, while Jason Sykora, superintendent for the city’s electrical utility, said it would have “flattened out our electricity rates for the next three years,” according to the report.
Despite assurances from Revolve that they could curtail potential noise pollution from the proposed site’s air-cooling fans, it remained the principal concern, with residents citing the Bitcoin miner’s already established facility at Glencoe in the state and complaints about the noise emitted.
However, during a public hearing in late August, others also reportedly expressed concern over the impact on their home values and questioned crypto mining's benefits to society in general, recommending a moratorium on conditional-use permits for such operations in the county.
Reaction to the decision was mixed, according to The Minnesota Star Tribune. “[Residents] are overjoyed the current worry is over,” claimed local shop owner Hilary Mathis, who is running for mayor. However, Sykora said he was disappointed more people didn’t give the proposal a fair shot and that the money generated would have provided badly needed funding for the city.
Revolve Labs operates Bitcoin mining facilities across the U.S. as well as parts, repairs and hosting services, with a capacity of 537 PH/s, according to its website. In March, it signed an agreement with public Bitcoin miner MARA to provide site management and support services.
The Block reached out to Revolve Labs for comment.
Unintended consequences of Bitcoin mining shutdowns
Revolve Labs’ decision follows similar news last week, sparking a debate about the unintended consequences of Bitcoin mining facility shutdowns.
Residents of Stokmarknes, a Norwegian town in the north of the country, had been trying to get rid of a nearby Bitcoin mining facility for years amid noise complaints — with its operations eventually halted earlier this month.
What the residents perhaps didn’t foresee, however, is their energy bills are now set to spike 20% next month as the local power company seeks to recover lost revenue.
Critics of Bitcoin mining frequently highlight its vast energy consumption and the noise pollution generated by mining facilities. However, supporters of Bitcoin mining argue that it provides substantial benefits, particularly in areas with stranded or unused energy that would otherwise go to waste. Mining facilities can utilize this excess energy, stabilizing the grid by acting as a variable load. This helps to absorb surplus electricity during periods of low demand, ultimately reducing energy waste and lowering costs for other consumers.
For example, in Texas, Bitcoin miners have been credited with helping to lower electricity prices by distributing fixed grid costs across a broader base and providing demand flexibility.
Some may be willing to bear the brunt of increased energy costs to avoid the noise of Bitcoin miners. But for others, it’s an unintended consequence that adds to household pressures in an era of higher living costs.
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