- Crypto mine shutdown cuts noise, but raises power costs by 20%.
- Norway debates new regulations to limit crypto mining’s impact.
- Proposed law could push miners to relocate to other regions.
Residents of Stokmarknes in northern Norway are celebrating the closure of a local Bitcoin mining facility operated by Kryptovault that had been a source of noise complaints for more than two years.
The mining site, notorious for its loud air-cooling systems, prompted neighbours to liken the noise to a sawmill running 24/7. “We had to close our windows at night just to sleep,” said Harald Martin Eilertsen. Despite relief from the noise, the shutdown has brought an unexpected consequence — a 20% increase in electric bills.
Kryptovault, which had been the largest customer of local energy provider Noranett, accounting for 20% of its revenue, declared bankruptcy in September 2023. With the facility now closed, Noranett is passing the financial burden on to other consumers in the region, leading to the increase in electric bills.
Noranett’s network manager said that the electric bill surge will take effect as early as next month.
The shutdown comes on the heels of proposed regulations introduced by the Norwegian government in April 2024, aimed at curbing the growth of energy-intensive data centres and crypto mining.
These regulations, still under deliberation, would require data centers to register their operations, enabling authorities to identify and limit energy-intensive activities like crypto mining.
Digitalization Minister Karianne Tung stressed that Norway aims to attract data centers that bolster national infrastructure rather than deplete energy resources. Energy Minister Terje Aasland echoed this sentiment, saying “[crypto mining]…is an example of a type of business we do not want in Norway.”
If Prop 93 passes, the cryptocurrency mining industry could face major setbacks. Increased compliance costs and stricter oversight would reduce profitability and discourage new projects, potentially driving miners to relocate to more lenient regions.
The government’s focus on supporting socially beneficial data centers could also further limit the energy available for crypto mining.
