Residents of the northern Norwegian town of Stokmarknes have long struggled with the noise generated by a local Bitcoin mining facility. On Friday, this long battle came to an end as the facility, operated by KryptoVault, officially shut down. The mayor of Hadsel, which includes Stokmarknes, emphasized the community’s relief from the challenges caused by the noise from the mining operations. The town is now celebrating the end of years of noise complaints stemming from the Bitcoin mining facility’s operations.
Bitcoin Mining Facility in Stokmarknes Ceases Operations
The Hadsel municipality initially approved the Bitcoin mining site, but when the temporary permit expired, it was not renewed. Despite KryptoVault filing for bankruptcy in September 2023, operations in Stokmarknes continued until last week. Mayor Kjell-Børge Freiberg expressed satisfaction, stating, “The job is done. As Hadsel, we are very, very happy.” The constant noise from the cooling fans had been a major problem for residents, and the closure of the facility brought long-awaited relief.
Energy Consumption and Environmental Concerns
Critics of Bitcoin mining often highlight the large energy consumption and noise pollution caused by such operations. The Stokmarknes facility consumed around 80 GWh of energy annually, equivalent to the usage of 3,200 average households. The 24/7 operation of the air cooling fans was the main source of noise, despite various efforts to reduce it. Local resident Harald Martin Eilertsen described the impact on daily life, saying, “We had to close our windows at night just to sleep.” In April, the Norwegian government proposed regulations aimed at addressing and limiting the impact of such facilities in residential areas.
Effects of the Closure
While many residents celebrated the closure, it had undesirable consequences, particularly for the local electricity provider Noranett. KryptoVault was Noranett’s largest customer, accounting for approximately 20% of its revenue. The loss of this major source of income means that local residents will now face higher electricity bills. Robin Jakobsen, Noranett’s network manager, estimated that households would see an annual increase of 2,500 to 3,000 kroner (around $236 to $283). Mayor Freiberg acknowledged the complexity of the energy system regulation, stating, “We must deal with this. It is part of the regulation of our energy system and beyond the control of the municipality.”
Future Plans for the Municipality
With the closure of the data center, the municipality is now seeking new projects to utilize the excess electricity. Mayor Freiberg highlighted the potential to attract industries that would add value to the region, saying, “This is certainly an opportunity for our municipality, making us more attractive. But we want value-creating industries – nobody should think we want another data center.” While some residents find the increase in energy costs acceptable in exchange for peace and quiet, others view it as an additional burden during a period of rising living costs.
The closure of the Bitcoin mining facility in Stokmarknes marks a significant victory for local residents who have endured years of noise pollution. However, the shutdown comes with financial consequences, such as higher energy bills for the community. As the municipality explores alternative uses for the excess electricity, it remains to be seen how they will balance economic growth with maintaining the quality of life for their residents.
Stokmarknes Bitcoin mining closure, Noranett energy bills, KryptoVault bankruptcy
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