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The Coxsackie Town Board is poised to pass a full ban on cryptocurrency mining and data centers during their meeting on Tuesday (March 10). Town Supervisor Rick Hanse cited concerns over the excessive electric power usage by these facilities, which can drive up local energy costs and produce low-frequency noise that may harm residents' health. The board meeting is scheduled for 7 p.m. at Town Hall.
The proposed legislation would amend the town's zoning laws, making data centers and crypto-mining facilities nonpermitted uses. This means the planning and zoning boards cannot issue special use permits or variances for these types of facilities. According to Hanse, the ban is in the town's best interest to protect residents from the negative effects associated with these operations.
Crypto mining involves using powerful computers to solve complex puzzles on a blockchain, consuming significant amounts of electricity. The Cool Down Company reports that crypto mining operations in the U.S. consume 17 gigawatts of power annually, a figure expected to rise to 130 gigawatts by 2030. This increased demand for electricity can lead to higher costs for local residents.
Board member Thomas Burke emphasized the importance of community input, stating that the public hearing will serve as an "information-gathering" session. Burke noted that the town has previously received complaints about noise from a former facility, which contributed to the decision to consider the ban.
While the town currently has no data centers or crypto-mining facilities, the proposed law would ensure that any future developments in these areas are prevented. Hanse expressed confidence that the law will pass, stating, "No reason for it not to." The board's decision reflects a growing trend across the U.S. to regulate or ban crypto mining due to environmental and energy concerns.