Norway: Bitcoin Mining Facility Shutdown Leads to 20% Higher Energy Bills for Town Residents
Kryptovault's Bitcoin mining facility in Stokmarknes, Norway, recently closed, causing residents to face a 20% rise in electricity bills. The site was shut down because the Hadsel municipality didn't renew its operating permit, following ongoing noise complaints from locals.
- Hadsel municipality granted Kryptovault a permit three years ago to operate the Stokmarknes site. However, residents complained about noise from air cooling fans, which are louder than liquid cooling.
- Kryptovault measured internal noise levels, claiming they were within limits, and promised to build higher noise walls and use sound-absorbing materials. Despite these efforts, residents remained dissatisfied.
- Kryptovault was the largest customer of local energy company Noranett, making up to 20% of its income. After the site closed last week, Noranett decided to raise electricity prices for residents to offset the lost revenue. As a result, power customers will face a 20% increase next month.
Mayor Kjell-Borge Freiberg told local media that the municipality will now hunt for new projects that can take over the power that is now left over after the data center ceased operations.
- The shutdown follows proposed Norwegian regulations from April 2024 intended to limit energy-intensive data centers such as Bitcoin mining. If adopted, these rules would require data centers to register operations to help authorities curtail high energy use activities.
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