- The residents of Stokmarknes, a town in northern Norway, have been battling against a local Bitcoin mining facility for an extended period due to noise issues.
- On Friday, their persistence paid off as the KryptoVault-operated facility officially shut down.
- The mayor of Hadsel, which includes Stokmarknes, shared the community’s relief, emphasizing the challenges faced due to the noise from the mining operation.
Norwegian town celebrates as Bitcoin mining facility shuts down, ending years of noise complaints.
Bitcoin Mining Facility in Stokmarknes Ceases Operations
The municipality of Hadsel initially approved the Bitcoin mining site but did not renew its permit after the temporary one expired. KryptoVault, the company operating the facility, reportedly went bankrupt in September 2023. Despite the bankruptcy, operations at the Stokmarknes site continued until last week. Mayor Kjell-Børge Freiberg expressed his satisfaction, stating, “It’s a done deal. We are very, very happy in Hadsel.” The continuous noise from the air-cooling fans had been a significant issue for residents, making the closure a much-awaited relief.
Energy Consumption and Environmental Concerns
Critics of Bitcoin mining often point out the massive energy consumption and noise pollution associated with these operations. The Stokmarknes facility consumed around 80 GWh annually, equivalent to the energy usage of 3,200 average households. The 24/7 operation of air-cooling fans was a primary source of the noise, despite various sound reduction efforts. Local resident Harald Martin Eilertsen, who lived close to the site, mentioned the impact of the noise on daily living, saying, “We had to close our windows at night just to sleep.” The Norwegian government’s proposed regulations in April aimed to address and limit the impact of such facilities in residential areas.
Implications of the Closure
While many residents celebrated the closure, it led to unintended consequences, particularly for the local power company, Noranett. KryptoVault was Noranett’s largest customer, contributing to around 20% of its revenue. The absence of this significant source of income means residents will face a noticeable hike in their electricity bills. Noranett network manager Robin Jakobsen estimated that households would see an increase of 2,500 to 3,000 kroner ($236 to $283) annually. Mayor Freiberg acknowledged the complexity of the energy system regulation, stating, “We have to deal with it. That’s just how the regulation of our energy system works, which is outside the municipality’s control.”
Future Prospects for the Municipality
With the data center closed, the municipality is now searching for new projects to utilize the electricity surplus. Mayor Freiberg emphasized the potential to attract industries that create additional value for the area. “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,” he remarked. While some residents may find the increased energy costs acceptable in exchange for peace and quiet, others view it as an additional burden in an era of rising living expenses.
Conclusion
The shutdown of the Bitcoin mining facility in Stokmarknes marks a significant victory for local residents who endured years of noise pollution. However, this closure brings financial implications, with increased energy bills for the community. As the municipality seeks to find alternative uses for the electricity surplus, it remains to be seen how they will balance economic growth with the quality of life for their residents.
