New York hosts four major bitcoin mines, which consume substantial electricity and water for cooling, produce constant noise, and significantly contribute to greenhouse gas emissions.
Residents are increasingly frustrated by their presence.
“I’m probably within a mile and a half of the facility, and I can hear it,” said Erin Robinson, a sociology professor at Canisius University in Buffalo, who lives near a bitcoin mine close to the Canadian border. “It’s a low hum that just kind of sits in your ears.”
Bitcoin, the largest cryptocurrency, is managed by a decentralized network. A network algorithm assigns each transaction a unique code, which bitcoin “mines” solve using powerful computers running constantly.
Miners receive 3.125 bitcoins (valued at about $95,000) per transaction validated. The high energy demand dictates mine locations based on electricity prices.
New York attracts miners with cheap electricity, particularly in Northern towns with abundant hydropower. Some mines also purchase decommissioned power plants to supply their operations, often running them continuously.
Two bitcoin mines in Northwestern New York have increased emissions by ramping up operations at purchased gas plants. These setups involve numerous computers that require extensive cooling from noisy fans and cold freshwater.
Local opposition to these operations has been robust, leveraging governance at local and state levels.
“Crypto mines exploit all of the distributed impacts in a way that has made them difficult to regulate and understand,” said Mandy DeRoche, a deputy managing attorney with Earthjustice.
An Energy-Intensive Operation
The energy consumption of bitcoin mines is largely unreported. In early 2024, the Energy Information Administration (EIA) was tasked with data collection from 130 cryptocurrency miners in the U.S. The survey is ongoing.
The EIA estimates cryptocurrency’s energy use as 0.6% to 2.3% of U.S. electricity consumption. In New York, bitcoin mining energy is sourced from either the state grid or miner-owned power plants.
Greenidge Generation, a facility near Seneca Lake, transitioned from coal to gas peaker operations in 2017 and began bitcoin mining in 2020.
“Greenidge became the test case for 49 other underutilized plants to turn to crypto mining,” said Yvonne Taylor, vice president of Seneca Lake Guardian.
New York mandates power plants acquire an air permit every five years. Greenidge’s permit expired in 2021, and during renewal, provided data on energy operations.
In 2018, Greenidge generated 203,918 megawatts for the grid. By 2020, while increasing bitcoin mining, it produced 215,588 megawatts for the grid and an additional 132,215 megawatts for mining.
In 2022, Governor Kathy Hochul signed a two-year moratorium on air permits for fossil fuel plants serving crypto mines. Greenidge was exempt due to prior application submission.
The Department of Environmental Conservation denied Greenidge’s permit renewal, citing inconsistency with the State’s Climate Act.
Greenidge has increased emissions since mining, with projected emissions from 2022 to 2026 being six times higher than pre-mining operations.
Greenidge continues operation amid appeals, as allowed under State Administrative Procedures. Seneca Lake Guardian and community groups oppose these appeals with Earthjustice’s representation.
“They’re acting like a petulant, rich child,” said Taylor. “We are confident we will prevail.”
Bitcoin Mines—Loud, Thirsty, and Polluting
Small communities often underestimate the impact of bitcoin mines, swayed by potential job creation. “I don’t think most communities realize the implications until it’s too late,” said DeRoche. “People later find that maybe this isn’t the best use of tax dollars.”
The Canadian company Digi Power X operates a facility near Buffalo, causing noise disturbances for residents like Robinson. This led to a two-year mining ban and a noise study in North Tonawanda.
“We just can’t live like this,” said resident Deborah Goldeck.
A 2021 environmental assessment estimated water consumption at 500,000 gallons daily, equal to 25 swimming pools.
Bitcoin mines use water and fans for server cooling; 2021 consumption was 1,573 billion liters, rising since.
In North Tonawanda, wastewater infrastructure is a concern. Near Seneca Lake, Taylor worries about warm water discharge potentially creating harmful algal blooms.
“If there’s a harmful algal bloom in front of my water source, I can’t use my water at all,” said Taylor.
Seneca Lake Guardian and others sued Greenidge Generation in 2023 for Clean Water Act violations, but the case was dismissed.
Local successes in curbing crypto mines involve local laws, but larger state-level lawsuits are crucial for halting operations.
In November 2024, North Tonawanda won a lawsuit, with the New York Supreme Court requiring a review of Fortistar’s sale to Digi Power X in light of the state’s Climate Act.
“You cannot allow this plant sale, resulting in increased operations and pollution, without climate law analysis,” said DeRoche.
Digi Power X’s air permit expired in 2021, with no decision yet on renewal.
The company plans a new cryptomining facility in Hildebran, North Carolina, but hasn’t applied for permits. Residents worry about potential impacts.
“Anybody who lives close to one of these is not happy,” said Bruce Berry, a Hildebran resident. “What are we getting here?
Hildebran town officials lack the authority to stop the facility, but a proposed bill might give local governments more zoning control.
Grid-Powered Mining
Other New York cryptocurrency mines connect to the grid, obscuring their environmental impact and complicating legal action. “It’s difficult to get reliable information on their power usage and grid impact,” said DeRoche.
Harvard scientists mapped air pollution from 34 major U.S. bitcoin mines, previously identified by the New York Times.
Using data and dispersion models, scientists found 635 power plants supplying electricity to these mines from August 2022 to July 2023.
“These facilities have an energy demand up to 33% more than Los Angeles,” said Gianluca Guidi, a Harvard visiting scholar.
The study tracked PM2.5 pollution, linked to health impacts like childhood asthma. In New York, multiple city areas were noted as pollution hotspots.
One hotspot was in Queens, near the Astoria Generating Station. Another was traced to a New Jersey power plant serving upstate New York bitcoin mines.
“Electricity grids aren’t perfectly divided along state lines,” said Guidi. “Pollution can affect communities in another state.”
Cryptocurrency industry supporters argue mining stabilizes the grid, but this claim remains untested, according to New York Independent System Operator.
Continued Deregulation
The cryptocurrency industry gained attention from President Trump, who endorsed it during his 2024 campaign. The Trump family owns World Liberty Financial, and Trump’s sons are invested in American Bitcoin.
Trump signed an executive order for crypto regulation, placing allies in the Securities and Exchange Commission.
With Trump’s support for fossil fuel expansion, bitcoin mines may continue relying on polluting plants.
The New York Independent System Operator is preparing for increased demand over the next decade, partly due to cryptocurrency mines.
“Demand on the grid might surpass generation and transmission build-out,” warns a 2024 reliability report.
Mines in North Tonawanda and Dresden continue operations, alongside their polluting plants.
“The burden of proof still comes down to the people—we’re still in charge of proving that there isn’t a risk,” said Robinson. Agencies “assume that it’s safe until they see an accident or see devastation in terms of our power grid or wastewater or noise violations.”
Original Story at insideclimatenews.org