A company plans to start development of a data center for crypto mining in Burke County late this year.
A national coalition against crypto mining is hoping residents in the town of Hildebran and Burke County will call for restrictions against the industry.
Crypto mining is the operation of special computer equipment to mine or create virtual cryptocurrency like Bitcoin.
Digi Power X Inc., formerly Digihost, an energy company that builds and manages data centers for crypto mining, has plans to develop a center for crypto mining on Cline Park Court in Hildebran, according to the company鈥檚 January corporate overview presentation for investors.
While not directly addressing Digi Power X鈥檚 plans, the Hildebran Town Council is considering a zoning ordinance that would limit where crypto mining can take place. Any crypto mining facility would have to be approved through conditional zoning, according to town information. The council will review the ordinance at a meeting on Monday. The meeting starts at 7 p.m. in the council chamber of the Albert Parkhurst Municipal Complex.
Digi Power X鈥檚 plans in Burke County
Digi Power X says it has multiple existing data centers that are used for mining cryptocurrency, and a power plant, according to the company鈥檚 January corporate overview.
The overview says a North Carolina site in Hildebran is in development. It says development at the site will start in the fourth quarter of this year.
Digihost International Inc. purchased 19.5 acres of vacant land at 199 Cline Park Court in Cline Industrial Park in August 2022 from Shook Builder Supply Co., according to records with the Burke County Register of Deeds. The company is based in Tonawanda, New York. It also has sites in Alabama and New York.
Three solar fields near the Didi Power X site are owned by Dogwood Creek Land Holdings LLC based in Scottsdale, Arizona, according to county land records.
According to state records, Dogwood Creek Land Holdings LLC goes back to Cypress Creek Renewables that has its principal office in Santa Monica, California.
Digihost said in its January overview that its Hildebran location is being developed as a 200 megawatt site and has the potential for significant capacity for future development into a major data center.
In its corporate overview, the company said it is looking to find efficient, clean ways to power its data centers. It said it has signed a to initiate the development of a nuclear power source catered toward its North Tonawanda 60 megawatt power plant.
In early March, Digihost announced its name change to Digi Power X Inc.
Town of Hildebran
Hildebran Mayor Wendell Hildebrand said the company has not applied for or received any required permits from the town.
Alan Wood, president and CEO of Burke Development Inc., said he has not heard from Digi Power X about a project.
Still, the town is considering safeguarding the public in anticipation of the proposed data center.
The town council is expected to consider a zoning text amendment Monday night. The town鈥檚 zoning ordinance does not specifically address the operation of cryptocurrency mining, according to the town. The amendment would 鈥渕itigate the negative effects of cryptocurrency mining operations. This includes, but is not limited to, high energy usage, noise pollution and the disposal of electronic waste,鈥� according to the town.
The council鈥檚 agenda said, 鈥淔or the purposes of the associated regulations, cryptocurrency mining includes the commercial 鈥榗reation鈥� (鈥榤ining鈥�) of virtual currency not recognized as legal tender of the U.S., but does not include the exchange of cryptocurrency, the use, creation, or maintenance of all types of peer-to-peer distributed ledgers. This definition does not include the use of one or not more than five computers from which cryptocurrency is mined in an enclosed structure, provided the cryptocurrency is not mined for commercial purposes.鈥�
The town鈥檚 proposed ordinance for crypto mining operations would prohibit using cargo containers, railroad cars, semi-truck trailers or other similar outdoor storage containers for any part of the operation.
Requirements would also include:
- Setbacks of at least 50 feet from all property lines and 500 feet from any homes.
- Setbacks of at least 1,000 feet from property with sensitive populations such as schools, hospitals or assisted living facilities.
- Buffers and screening, including a 20-foot wide, at a minimum, evergreen plant buffer designed to grow at least six feet in height to be maintained along all property lines. All vegetative buffers shall be maintained in good standing.
- A noise mitigation plan will be required to demonstrates the methods for reducing or containing noise. The maximum level of decibels can鈥檛 exceed 30 at the property line.
- Security fencing at the property line with a minimum 6 feet. Chain-link fencing or barbed wire fencing would be prohibited.
- Lighting mitigation and sign conformance.
- Verification that any electronic waste generated at the cryptocurrency mining operation will be handled by a North Carolina Department of Environmental Quality-licensed electronic waste recycling firm.
- An electrical disconnection switch has to be clearly marked and unobstructed and any power utility company must have access to the disconnection switch at all times.
- Duke Energy or any other power provider would have the authority during high power usage events to cut or significantly reduce or restrict power to any cryptocurrency mining operation before considering reducing power to homes or other commercial or industrial facilities.
Coalition against crypto mining
The National Coalition Against Cryptomining says Digihost Technology Inc. is presenting the project as a data center in local filings but it is a crypto mining facility. The coalition says crypto mining operations are targeting rural towns, and bring impacts including straining the energy grid, raising the energy bills of local residents and excessive water usage, air pollution, noise pollution, electronic waste and environmental impacts.
The coalition said that in response to what has happened in Cherokee County with three crypto mines, multiple western North Carolina counties have put in place ordinances that ban or greatly limit this industry in their communities.
The coalition is urging local officials to reject the proposal and is calling on the community to voice their opposition and protect Hildebran from crypto mining.
鈥淭hese companies are not just out to take advantage of North Carolina, they鈥檙e targeting rural communities and intentionally deceiving local governments and citizens nationwide,鈥� said Cyndie Roberson, with the National Coalition Against Cryptomining and former Cherokee County resident. 鈥淐ommunities are left to deal with the consequences while these companies walk away with the profits. Hildebran residents deserve transparency and the chance to stand up before that happens here.鈥�