Residents of Stokmarknes, a Norwegian town in the north of the country, have been trying to get rid of a local Bitcoin BTC
-3.95%
mining facility for three years amid complaints of noise from its air-cooling fans.
On Friday, they reportedly celebrated as the KryptoVault-managed site ceased operations, according to local media outlet NRK. The municipality of Hadsel which includes the town had initially approved the facility but failed to renew its permit after the firm’s temporary one expired. KryptoVault reportedly entered into bankruptcy in September 2023, though the Stokmarknes site had remained operational until last week’s closure.
"It’s a done deal. We are very, very happy in Hadsel," Mayor Kjell-Børge Freiberg told NRK, according to a translated version of the report. "There has been a noise issue in the area, so it’s been a challenging situation for many people. But as they say: after the sweet comes the bitter,” Mayor Freiberg added.
Critics of Bitcoin mining frequently highlight its energy consumption and noise pollution generated by mining facilities, with the Stokmarknes site's closure following the Norwegian government’s introduction of proposed regulations in April, designed to identify and curb data centers and crypto mines.
Mining cryptocurrencies like bitcoin is highly energy intensive, requiring powerful computers to solve complex calculations in exchange for rewards. The facility near Stokmarknes reportedly consumed around 80 GWh annually — the equivalent of 3,200 average households. The site’s 24/7 air cooling fans were the source of the noise complaints — far louder than liquid cooling alternatives, despite efforts to implement several sound reduction measures. “We had to close our windows at night just to sleep,” local resident Harald Martin Eilertsen, who lives 250 meters from the site, said in August. "People are going mad, angry and desperate because of this.”
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.
Unintended consequences
What the residents of Stokmarknes perhaps didn’t foresee is a hike in their energy bills, as local power company Noranett now seeks to recover from a loss in revenue due to the sites’ closure.
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KryptoVault was the largest customer of Noranett, accounting for around 20% of the energy provider’s revenue. With that source of income and its variable load benefits now gone, local residents’ bills are set to increase by more than 20% next month, Noranett network manager Robin Jakobsen said, according to NRK.
Jakobsen estimates that a typical household pays 12,000 to 13,000 kroner ($1,131 to $1,226) annually for electricity and that after the adjustment, it will be 2,500 to 3,000 kroner ($236 to $283) more expensive per year.
"We have to deal with it,” Mayor Freiberg told NRK. "That’s just how the regulation of our energy system works, which is outside the municipality’s control.”
The Mayor said the municipality is now looking for new projects that can utilize the electricity surplus after the data center’s closure, but it was unlikely to be solved soon. “It’s definitely an opportunity for the municipality, making us even more attractive. But we want industries that create value — so no one should think we want another data center."
For some, that may be a cost they are willing to bear to avoid the noise. For others, it’s an unintended consequence that adds to household pressures in an era of higher living costs.
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