The Kingsport Board of Mayor and Aldermen has made significant strides by proposing a new ordinance aimed at regulating cryptocurrency mining operations and data centers within the city. The ordinance, which passed its first reading recently, establishes comprehensive standards that will govern these operations, focusing primarily on mitigating noise impacts, ensuring adequate setbacks, and enforcing specific zoning restrictions. This framework will allow these operations to proceed under strict oversight, providing a safeguard for existing property owners.
In accordance with the new ordinance, cryptocurrency mining activities, such as Bitcoin mining, will only be permitted in designated heavy industrial zones. Furthermore, these operations will require special exception approvals that involve continuous sound and vibration assessments to address concerns related to noise pollution.
Several members of the board have voiced their support for the ordinance, characterizing it as a well-considered and balanced approach. They noted that the ordinance is attracting attention from other municipalities that are considering similar initiatives. Following this approval, the next step will be a second reading, which, if passed, will finalize the ordinance and implement these regulations.
This regulatory discussion comes against a backdrop of heated public debates as Bitcoin mining operators in nearby areas have attracted considerable scrutiny due to excessive noise levels. For example, CleanSpark's proposal for a 30-megawatt facility was put on hold last year after local authorities denied a critical rezoning request, even with claims that innovative immersion cooling technology would minimize noise concerns.
Local residents have expressed their apprehension about the disruptive noises emanating from a mining facility in the nearby community of Limestone. This situation has highlighted the conflict between the operational needs of cryptocurrency miners and the tranquility expected in residential neighborhoods. The newly proposed ordinance aims to strike a balance, fostering the growth of technological innovations while respecting the rights and needs of local residents.