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Community & Economy

Will this become a cryptocurrency mining operation?

The City's response

This is a fair concern, because crypto-mining has a different profile than a standard data center β€” it can be more energy-intensive and, depending on the setup, noisier. People are right to want it handled deliberately rather than lumped in with everything else.

Key point: A standard data center stores and processes data for websites, businesses, and cloud services. Cryptocurrency mining is a separate use, and our proposed ordinance treats it that way.

What the proposed ordinance does / the City can require:

  • Specifically calls out crypto-mining as a distinct use rather than letting it qualify automatically as a β€œdata center.”
  • Requires additional information and a separate review before such a use could be considered.
  • Preserves the City’s ability to attach conditions (or to decline the use) based on energy demand, noise, and neighborhood impact.

Under Section 5 of the draft ordinance, cryptocurrency mining is not a permitted use unless it is separately approved through enhanced findings β€” the applicant must demonstrate significant local economic benefit, electrical-demand compatibility, noise mitigation, infrastructure compatibility, and compatibility with surrounding land uses β€” and the Governing Body may add conditions or deny it.

Sources & further reading

  1. Fact Sheet: Climate and Energy Implications of Crypto-Assets in the United States β€” White House Office of Science and Technology Policy (OSTP) , September 2022
  2. Tracking electricity consumption from U.S. cryptocurrency mining operations β€” U.S. Energy Information Administration (EIA) , February 2024

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