North Tonawanda bans cryptocurrency mining for two years – Buffalo News

New cryptocurrency mining operations were banned in North Tonawanda for the next two years after a unanimous Common Council vote Tuesday evening.

The vote came as a relief to residents who had fought for the moratorium.

Its been a long time coming, said Deb Gondek, one of the citizen advocates. Residents have been suffering from the noise for far too long and put countless hours into this. ... Its nice to see the city take action.

The citys two-year moratorium on new operations or the expansion of existing data centers includes facilities housing multiple banks of computers within a building, modular facilities containing processors in multiple storage-like containers, server clusters and other operations related to cryptocurrency mining, blockchain authenticating, Artificial Intelligence (A.I.) processing, general data computing, processing and storage, and other large-scale electronic-based centers of the like, according to the resolution passed Tuesday.

An aerial view of the Digihost cryptomining facility on Erie Avenue in North Tonawanda.

The ban on new data centers comes after the Common Council heard complaints from residents about the Digihost cryptocurrency mining facility off Erie Avenue since before it began operations in February 2022.

Digihost is a blockchain technology company that mines for cryptocurrency using energy from the grid and the Fortistar gas power plant it acquired in 2022.

The noise emanating from the facility has been said to reverberate at times like a jet plane engine throughout nearby neighborhoods, disturbing residents and possibly impacting their mental and physical health, according to experts. The intermittent and at times deafening noise likely comes from large fans that are needed to cool the bitcoin-mining computers housed in buildings at the Erie Avenue property.

The noise from the Digihost facility has been polluting the North Tonawanda community for more than two years. Since then, residents said the city has done little, despite countless complaints, to enforce its noise ordinance against Digihost and give relief to those living around the facility.

Although city officials said they had been in regular contact with Digihost operators to reduce the noise from the facility, residents said it never went away.

It wasnt until after residents came forward with a proposal for the moratorium on May 14 and The Buffalo News reported on the noise issues from Digihost in June that the city took action. At its July 2 and 9 meetings, the Common Council promised several actions to address noise pollution and proposed the moratorium.

Those actions included hiring an outside expert, Les Blomberg of the Noise Pollution Clearinghouse, to conduct noise monitoring around Digihost to determine whether the facility was violating the citys noise ordinance. Additionally, Blomberg is contracted to train North Tonawandas police and code enforcement employees on how to properly use noise monitoring equipment to enforce the noise ordinance.

Blomberg is also expected to help the city update its noise ordinance.

He told The News in June that North Tonawandas noise ordinance should ensure residents are protected from plainly audible noise that can be heard on their property. The latest version of the citys ordinance focuses on protection from unreasonable noise, which Blomberg noted was subjective.

In total, the city expects to pay Blomberg about $17,000 to $23,075 for his services. Digihost has promised to reimburse the city for costs incurred up to $30,000, according to North Tonawanda Mayor Austin Tylec.

During the two-year moratorium, the city also expects to update its zoning code to possibly address high noise levels.

North Tonawandas data center moratorium was disappointing, said Ewelina Czapla, director of energy policy at Digital Power Network, a bitcoin advocacy organization.

However, she noted that issues around sound can easily be addressed through a series of different operational or technological changes that a data center can implement.

Fed up with the noise from a nearby crypto mining plant, North Tonawanda residents are turning to the state Department of Environmental Conservationas they seek to return their neighborhood to its former tranquility.

Czapla said facilities represented by Digital Power Network which does not include Digihost have converted from using fans to cool down their computers to liquid cooling tactics. Additionally, some facilities have built walls or planted trees to block the noise from disturbing residents, she said.

At the end of the day, it really comes down to each company to make their own decisions around how they want to invest in those kinds of upgrades, Czapla said.

Digihost did not respond to requests for comment from The News about the moratorium.

Tylec said that Digihost has recently been adjusting its equipment and plans to add a wall on the property that could help reduce noise from the facility.

Reach climate and environment reporter Mackenzie Shuman at mshuman@buffnews.com or 716-715-4722.

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North Tonawanda bans cryptocurrency mining for two years - Buffalo News