Norway Bitcoin Mining Center Shuts Down

The operations of the Bitcoin mining center in the Hadsel municipality of Norway were ultimately halted last week due to noise complaints. Nevertheless, the closure has resulted in a 20% increase in the electricity expenditure of residents.

According to a local report, the crypto mining center has been a source of frustration for politicians and neighbors. The facility, which was power-hungry, had an annual electricity consumption of approximately 80 GWh.

“This is equivalent to the annual consumption of approximately 3,200 households,” stated the Norwegian Broadcasting Corporation (NRK) report.

Additionally, the neighborhood has experienced considerable frustration due to the continuous operation of fans to chill the computers.

According to a 2022 report, people have become upset and angry due to the commotion coming from the crypto facility. Nevertheless, the organization responsible for the facility maintained that the decibel levels were below the national thresholds.

“There is now a complete stop.” Kjell-Børge Freiberg, the mayor of Hadsel, announced to NRK, “We are delighted with Hadsel.” He also stated that the data center has been inconvenient for politicians and neighbors for the past three years.

Bitcoin Mining Shutdown Makes Electricity 20% More Expensive for Locals

The utility rent for the municipality’s residents has increased due to the Bitcoin mining plant’s closure. This is because the plant was responsible for 20% of the revenue of the local network corporation, Noranett.

Noranett is one of the 85 grid companies in Norway responsible for transmitting electricity from power plants to electricity consumers via power lines.

“The remaining electricity customers are responsible for paying the bill as the crypto mining data center closes.”

Noranett’s network manager, Robin Jakobsen, emphasized that the impact of a single client switching off overnight is substantial.

He anticipates that after mining operations conclude, a typical household paying NOK 12,000-13,000 ($1130-1225) annually will be required to pay an additional NOK 2,500-3,000. This estimate will be effective next month.

The mayor said the municipality will pursue new initiatives to replace the remaining electricity. The mayor anticipates that this action will result in an additional reduction in the electricity bill for online consumers.

“This is how our power system is regulated, beyond the municipality’s jurisdiction and authority.” We are required to address that matter.