Tech
Judge-Executive Wolfe Says Noise Barrier Planned for Suspected Cryptocurrency ‘Mine’ • Kentucky Lantern
Wolfe County Judge-Executive Raymond Banks says a Houston company operating a new data center — suspected to be a cryptocurrency mining facility — in his eastern Kentucky county plans to erect a barrier to dampen the constant noise that has drawn complaints from neighbors for weeks.
But Banks says he opposes calls for the county government to enact a noise ordinance because he believes it could hinder economic development.
“I’m not going to shut down the entire county because of a noise complaint. I’m not going to do that,” Banks said. “Every time you get into that noise ordinance – like zoning – you end up in chaos. It makes everything get out of control.”
Houston, Texas-based Artemis Power Tech began operating the plant in August next to an electrical substation near the Wolfe-Lee county line, creating a high-pitched, persistent hum. Residents near the facility have been made worse by the incessant din of recent weeks and be particularly concerned about the impact of noise on wildlife.
In an interview Wednesday morning, Banks, Wolfe County’s top elected official, said a representative from Artemis Power Tech told him a noise barrier would be installed. He said he wasn’t sure what type of noise barrier the company had in mind.
“They’ll fix it. It’s just going to take a little bit of time,” Banks said. “I’m working as hard as I can on this.”
Brenda Campbell has lived in her Wolfe County home since 1980, when she says her community was much quieter. (Kentucky Lantern photo by Liam Niemeyer)
Brenda Campbell, who lives near the facility and has called for action from the county government, told the Lantern that a noise ordinance would have been a better solution. But she hopes the barrier Artemis Power Tech says it is installing will keep the noise to a minimum.
“This isn’t perfect. But if he can curb the noise, then I’m willing to try it. I hope they’re honorable and do what they say,” Campbell said. “I’m not sure because I don’t know how much noise it’s going to stop.”
Banks said Wolfe County struggles with poverty and needs to take advantage of any economic development it can get, citing an influx of cabins into the county in recent years to accommodate tourism. According to the U.S. Census Bureau, about 29% of Wolfe County’s approximately 6,400 residents are in poverty, nearly double the state average.
The Red River originates in Wolfe County. Part of the county is located in the Daniel Boone National Forest Red River Gorge Geological Area, which attracts climbers from around the world and is a favorite destination for hikers and campers from the multistate area. The data center is about six miles from Bridge State Resort Natural Park.
“We have nothing here, and the only way we’re going to get anything is to let these people come here,” Banks said.
Artemis Power Tech doesn’t explicitly say what it’s using its data center in Wolfe County for, but previous report from the Lantern suggests that the facility is a cryptocurrency mining facility. The chief operating officer and co-founder of Artemis Power Tech did not respond to interview requests about the proposed noise barrier.
Cryptocurrency mining facilities are typically used immense amounts of power to run numerous computers; the fans that cool the machines create a noticeable noise. In the case of the popular cryptocurrency Bitcoin, these machines solve complex mathematical problems to ensure the security of online Bitcoin transactions. As a reward for solving these problems, the cryptocurrency mining facility is rewarded with Bitcoin itself. Each Bitcoin is valued at over $25,000 as of early October.
In general, these operations they are not great job creators. Some proponents of cryptocurrency mining argue that revenue created by selling electricity to power the facilities could delay future bill increases, even as environmental groups warn that such facilities it can instead be harmful to consumers by increasing public service tariffs.
The leader of a statewide environmental conservation nonprofit recently visited the data center site in Wolfe County. Lane Boldman, executive director of the Kentucky Conservation Committeehe said he understands the desire for economic development, but that the impact of that development on a community should also be weighed.
“People go to these areas for peace and quiet,” Boldman said. “You want to encourage people to get out and enjoy the region, but not do it in a disruptive way 24/7. And the difference with the cryptocurrency mining operation is that it’s disruptive 24/7 on 7.”
Boldman said it’s unfortunate that the Wolfe County judge-executive hasn’t been open to considering a noise ordinance, saying it’s possible to tailor such an ordinance to have “quiet hours” at certain times. In Arkansas, some local governments have passed noise ordinances directed at cryptocurrency mining facilities, but a new state law that took effect in August now bars local governments from passing such noise regulations.
“There are definitely a lot of new businesses in that region that are more geared towards the outdoor recreation economy and that may have some more temporary noise issues,” Boldman said. “You have to take into account the noise, which is so destructive that it makes it impossible for people to make a living in the region.”
An ATV park is located near the data center, but neighbors say the noise is seasonal and sporadic.
Campbell, the neighbor who lobbied for a local noise ordinance, said she tried to talk to Banks about how an ordinance might address facilities or events that operate non-stop, such as the Artemis Power Tech data center, by excluding businesses or events that create temporary noise.
She said that looking beyond her situation, the enormous energy consumption of cryptocurrency mining operations and the perceived lack of regulation on such facilities in Kentucky concerns her. But she’s not sure what actions local governments can take to address noise from operations similar to Artemis Power Tech.
He also doesn’t understand why Wolfe County leadership is “afraid” to implement zoning regulations, which the county currently does not have, especially with the growth of outdoor recreation in the area. Under a zoning process, a hypothetical cryptocurrency mining facility, he said, would have to approach county officials before settling.
During a Wolfe County Fiscal Court meeting Tuesday, he said he told Banks and county magistrates that he would not abandon the noise issue until it was resolved.
“I think they are trying to appease an old woman who irritates them,” he said.
