WATERLOO — The request for a Bitcoin mining site in Black Hawk County was stopped in its tracks Tuesday by the Board of Supervisors.
The four members of the board present for the meeting unanimously voted against an ordinance to rezone property from an agricultural land use to a commercial manufacturing district. Supervisor Tom Little was absent.
J.P. Baric, the CEO of North Carolina-based MiningStore, is on a mission to construct a data center at 8226 W. Griffith Road in Hudson after success with a mining site in Grundy County that makes about $32,000 a day, according to The Gazette.
Bitcoin mining works like this: Computers calculate complex mathematical equations to confirm Bitcoin transactions, similar to how a bank confirms payments by a person to a store. These transactions form blocks and, as they are confirmed by the computer “miners,” it creates a blockchain – currently worth around $200,000.
Although the site makes thousands of dollars a day, the daily power bill exceeds $5,000, according to The Gazette. The article states an average home uses about 11,000 kilowatt-hours of electricity per year. The mining site uses about 54 million kilowatt-hours a year, using the amount of electricity needed to power about 4,900 homes – equal to 95% of households in Grundy County.
The number of computers at the site requires multiple fans to cool down the facility from the about 90 degree temperature. The heat and sound of the fans were a main concern to the residents next to the potential site.
Baric said the fans create 80 decibels of sound from 35 feet away, similar to the sound of a washing machine. Resident Joni Snyder said she visited the site and took videos of the sound from right next to the building to a half mile away. Supervisors and people attending the meeting were surprised at the level of sound.
According to the Centers for Disease Control and Prevention, noise above 70 decibels over a prolonged period of time can damage your hearing. The sound can be compared to anything from city traffic inside a car to a gas-powered lawn mower. Baric said these concerns were valid and noted he would minimize the sound by installing sound-deadening vents and keeping the fans and computers clean.
Residents were also worried about the effects of the heat emitted from the data center. Barbara Glasener’s family owns a farm near the site. Glasener expressed fear that the temperatures would create a “microclimate” which could lure insects and potentially damage crops. She was also worried the warmth would attract wild animals during the cold weather.
Every resident who spoke to defend their properties said the farmland is not a place for the data center. Instead, they suggested, it would be a better fit in an industrial park. The proposed area is 0.96 acres, which Baric said limits agricultural land use and keeps costs low.
“I understand his concern. You’re getting the best that he can do for his company so he can make the most profits,” Glasener said. “That’s what business is about. It’s minimizing your costs to maximize your profits. But that’s also what agriculture is about.”
Baric added that the project would create economic vitality in the community by generating cash flow. He related it to Black Hawk County’s 2028 vision statement. That calls for an effort to build desirable communities, promote economic vitality, and achieve environmental sustainability as well as to use technology for serving, working together, and transforming how the county leads.
Supervisor Chris Schwartz said the mining facility is not a part of the 2028 vision and said the project would be a “giant energy hog for (the) environmental future” as the county moves toward renewable energy usage. Residents seconded his worries.
“I’m concerned that you’re opening up Pandora’s Box by doing this,” Glasener said. “More precedents could be set that we might not be able to stop.”
Supervisor Linda Laylin said she voted no with her colleagues because the board usually supports the planning and zoning commission, which previously denied the request, as well.
