The Bitcoin mining center in Hadsel municipality, Norway, has officially ceased operations as of last week, primarily due to ongoing noise complaints. The shutdown, however, has resulted in a significant 20% hike in electricity bills for local residents.
Local reports indicate that the crypto mining center had been a persistent source of frustration for both politicians and nearby residents. The facility consumed approximately 80 GWh of electricity annually, equivalent to the yearly usage of around 3,200 households, according to the Norwegian Broadcasting Corporation (NRK).
The constant noise from the cooling fans necessary to manage the plant’s operations had also been a major issue. A 2022 report highlighted how the noise had caused considerable distress among the community. Despite the complaints, the company operating the facility maintained that the noise levels were within national regulatory limits.
“There is now a full stop. We are very, very happy with Hadsel,” said Kjell-Børge Freiberg, the mayor of Hadsel. Freiberg noted that the data center had been a significant nuisance to both local politicians and residents over the past three years.
Impact of the Closure on Local Electricity Costs
The shutdown of the Bitcoin mining center has directly impacted local electricity rates. The plant had been responsible for 20% of the revenue for the local grid company, Noranett, one of the 85 grid operators in Norway responsible for distributing electricity from power plants to customers.
With the loss of this major customer, Noranett has had to shift the financial burden onto remaining consumers. Robin Jakobsen, network manager at Noranett, explained that the departure of such a large customer overnight creates a financial strain. As a result, local households will see a notable increase in their electricity bills.
Starting next month, residents who previously paid NOK 12,000-13,000 ($1,130-$1,225) annually can expect their bills to rise by an additional NOK 2,500-3,000.
The mayor of Hadsel is now focused on finding new projects that could offset the lost revenue and potentially reduce the electricity costs for residents. “This is how the regulation of our power system works, which is beyond the municipality’s control. We must address this challenge,” Freiberg said.
The municipality is hopeful that new developments will help stabilize electricity prices and alleviate the financial impact on its residents.
