The Beacon Center of Tennessee has filed a lawsuit in federal court that seeks to repeal a sweeping ban on data centers and cryptocurrency mines enacted by Hawkins County late last year.
The conservative think tank is representing ExoticRidge, a Kentucky-based cryptocurrency mining company which wants to build an eight megawatt bitcoin mine adjacent to a fractionation plant in the farming community of Bulls Gap.
Many people who live nearby say they don’t want a bitcoin mine next door, fearing the potential for noise pollution and increased energy rates.
The company has said they would generate their own electricity with on-site generators, and have made promises to mitigate noise as much as possible. Still, local pressure on the Hawkins County Commission led them to pass a resolution banning data center development in September.
The Beacon Center’s complaint alleges Hawkins County has violated the 14th amendment of the U.S. Constitution, which gives people equal protection under the law. They say the county discriminated against ExoticRidge based solely on their industry.
“I really don’t understand why they would want to come into a community where they’re not wanted,” said Mike Trentham, who lives across the street from the proposed development. “I think [the county] should fight it. And I hope they do.”
ExoticRidge CEO Will Daugherty told WUOT News in a November interview he’s aware of community concerns but that he still intends to build the bitcoin mine.
“We’re trying to do things the right way,” Daugherty said. “We’re trying to make things better and not trying to create an increased issue for anyone … I understand that there are people that don’t want us here, and that’s unfortunate, because I do think that ultimately it’s a good thing.”
Crypto mines are a type of data center, which is a group of computers that operate 24/7 to run algorithms, solve equations, or store data for internet access. Bitcoin is the most popular crypto currency in the world, and is ‘mined’ by the computers when they solve a complex equation. ExoticRidge currently owns two bitcoin mines in Kentucky.
The computers in a crypto mine will rapidly chew up power and generate lots of heat. Large fans are used to cool them down so they don’t malfunction, which has a tendency to generate lots of noise. That combined with rising energy costs fueled by data center development has led many communities to pass moratoriums or bans on crypto mines and data centers in recent years.
Constituents in Hawkins County say their county commissioners have told them they intend to fight the Beacon Center’s lawsuit in court.
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