Residents of Stokmarknes in northern Norway are celebrating the closure of a local Bitcoin mining facility operated by Kryptovault. For over two years, this facility was a source of noise complaints.

The mining site, notorious for its loud air-cooling systems, prompted neighbors to liken the noise to a sawmill running 24/7.

"We had to close our windows at night just to sleep," said Harald Martin Eilertsen. Despite relief from the noise, the shutdown has brought an unexpected consequence -- a 20% increase in electric bills.

Kryptovault, the largest customer of local energy provider Noranett, accounting for 20% of its revenue, declared bankruptcy in September 2023.

With the facility closed, Noranett is passing the financial burden on to other regional consumers, increasing electric bills. Noranett's network manager said the electric bill surge will take effect as early as next month.

Proposed Regulations

The shutdown follows proposed regulations introduced by the Norwegian government in April 2024. These regulations aim to curb the growth of energy-intensive data centers and crypto mining.

Still, these regulations are under consideration. They would require data centers to register their operations, enabling authorities to identify and limit energy-intensive activities like crypto mining.

Digitalization Minister Karianne Tung stressed that Norway aims to attract data centers that bolster national infrastructure rather than deplete energy resources.

Energy Minister Terje Aasland echoed this sentiment: "[crypto mining]...is an example of a business we do not want in Norway."

If Prop 93 passes, the cryptocurrency mining industry could face significant setbacks. Increased compliance costs and stricter oversight would reduce profitability and discourage new projects, potentially driving miners to relocate to more lenient regions.

The government's focus on supporting socially beneficial data centers could also further limit the energy available for crypto mining.