Hadsel Faces $280 Extra Annual Power Costs After Local Bitcoin Mine Closure

• Hadsel residents face an extra $280 in electricity costs annually following the shutdown of a local Bitcoin mining facility.
• The Bitcoin mining facility contributed to 20% of the town’s power company revenue, causing financial strain after its closure.
• Many Bitcoin mining companies are diversifying into AI and HPC sectors due to rising energy costs and reduced mining rewards.

Hadsel, a small town in Norway, is grappling with a surge in electricity costs following the recent shutdown of a local Bitcoin mining center. The facility, which had contributed to 20% of the local utility company’s revenue, was closed after residents complained about excessive noise. This decision has now left households in Hadsel facing an annual increase of around $280 in their electricity bills.

The mining facility consumed approximately 80 gigawatt hours (GWh) of electricity annually, equating to the power usage of 3,200 households. Its closure has triggered significant financial strain on the local utility company, which relied heavily on the energy consumption generated by the Bitcoin operation. Hadsel’s mayor, Kjell-Børge Freiberg, acknowledged the challenge and mentioned that the town is seeking alternative projects to stabilize electricity prices.

Noise vs. Cost: Divided Reactions to Bitcoin Mining

The decision to shut down the Bitcoin mining center came after numerous complaints from residents about noise pollution. However, some experts argue that the media often exaggerates these concerns. Kjetil Hove Pettersen, CEO of the mining company KryptoVault, pointed out that only a small percentage of residents voiced these grievances. Nonetheless, their complaints have led to a broader debate about the benefits and downsides of hosting such facilities in small towns like Hadsel.

Other Norwegian towns, such as Sortland, have experienced similar challenges with Bitcoin mining operations, with noise complaints frequently being reported. Despite this, local governments continue to grapple with balancing residents’ concerns and the financial benefits these mining centers bring to their communities.

Bitcoin Miners Seek New Directions Amid Economic Challenges

Globally, Bitcoin miners are increasingly struggling to cope with rising energy costs and reduced mining rewards. The most recent Bitcoin halving in April, which halved the issuance of new Bitcoin, has significantly affected mining profitability. Companies like Marathon Digital and Riot Platforms are feeling the impact, leading many in the industry to diversify their focus.

Some Bitcoin mining firms are now turning to artificial intelligence (AI) and high-performance computing (HPC) sectors to offset losses. Core Scientific, a leading mining company, has successfully pivoted by securing a $6.7 billion deal with Nvidia-backed CoreWeave. This shift highlights the growing convergence of AI and Bitcoin mining as companies seek to stay financially viable.