New York Bitcoin Miners Acquiring Power Plants as Communities Resist

year, the four bitcoin power plants in New York State consumed around 1,000 megawatt-hours in one-hour intervals, which equals around 3,000 kilowatt-hours, or roughly the amount the average U.S. household consumes in about three months. This energy-intensive operation has led to calls to better understand where these mines are located—from urban settings to rural communities—and to examine the potential environmental impact they may have. 

Local Battles

One fight has been in Greenidge Generation, a former coal plant turned gas and bitcoin mine on the shores of Seneca Lake. In 2019, the facility announced a move into bitcoin mining, which stimulated an immense amount of pushback from residents as well as local officials concerned about increasing greenhouse gas emissions and requests to the plant’s water use. 

Now, Greenidge operates a 106-megawatt gas facility, sucking up natural gas and transforming it into around 11,000 new bitcoins annually. The facility’s gas operations—including peaker plants connected to bitcoin mines—increased annual greenhouse gas emissions by about 6% in Yates County, according to a 2021 assessment from the New York Department of Environmental Conservation (DEC). The DEC limited natural gas use for bitcoin miners, and in response, Greenidge sued. 

The trouble with addressing the problem rests in the detailed and redundant ways that air emissions are regulated by local, state, and federal laws. These don’t take much into consideration about bitcoin miners using a decommissioned power plant and how this should be regulated—if at all. And local stakeholders are usually opposed to further regulations—or the processes are so long winded that it fails in addressing the issue. 

A Local Victory

Residents of a small town in New York have recently achieved a notable victory in their fight to curb the expansion of bitcoin mining in their community. The town enacted a moratorium on new bitcoin mining operations until additional regulations and assessments could be developed to mitigate the negative impact on the local environment and community. This significant step was primarily driven by concerns regarding the strain on local power resources, environmental pollution, and noise disturbance caused by existing bitcoin mines in the area. 

The moratorium has given the residents a reprieve from the relentless noise generated by the bitcoin mines and has allowed further exploration of alternative solutions to address the challenges posed by these energy-intensive operations. While the battle against bitcoin mining in New York rages on, local communities are taking a stand to protect their environment and quality of life.