- Shutting down a cryptocurrency mine reduces noise, but increases electricity costs by 20%.
- Norway debates new regulations to limit impact of cryptocurrency mining.
- The proposed law could force 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, which had been a source of noise complaints for more than two years.
The mining site, known for its noisy air conditioning systems, has prompted neighbors to compare the noise to a sawmill running 24/7. “We had to close our windows at night to sleep,” said Harald Martin Eilertsen. Despite the relief the noise brought, the shutdown has led to an unexpected consequence: a 20 percent increase in electricity bills.
Kryptovault, which was local energy supplier Noranett’s largest customer, accounting for 20% of its revenue, declared bankruptcy in September 2023. With the facility now closed, Noranett is shifting the financial burden to other consumers in the area, leading to higher electricity bills.
Noranett’s grid operator said the increase in electricity bills would come into effect from next month.
The closure follows proposed regulations introduced by the Norwegian government in April 2024 aimed at curbing the growth of energy-intensive data centers and cryptocurrency mining.
The regulation, still under deliberation, would require data centers to log their operations, allowing authorities to identify and limit energy-intensive activities like cryptocurrency mining.
Norwegian Minister for Digitalization Karianne Tung stressed that Norway wants to attract data centers that strengthen national infrastructure rather than deplete energy resources. Norwegian Energy Minister Terje Aasland echoed this sentiment, saying that “(cryptocurrency mining)… is an example of a type of activity that we don’t want in Norway.”
If Proposition 93 passes, the cryptocurrency mining industry could face major challenges. Rising compliance costs and tighter oversight would reduce profitability and discourage new projects, potentially pushing miners to relocate to more forgiving regions.
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The government’s emphasis on supporting socially beneficial data centers could also further limit the energy available for cryptocurrency mining.
