Kingsport City Board of Mayor and Aldermen has approved amendments to zoning rules that make it possible for cryptocurrency mining companies and data centers to operate locally, at a time when noise from such operations has become a contentious issue in some US states.
Summary
- Kingsport officials have approved zoning amendments on first reading that would allow cryptocurrency mining and data centers to operate under defined location and noise standards.
- The move comes as some US communities continue to push back against crypto mining operations.
Kingsport, which is one of the most populous cities in Tennessee and known to be a relatively friendly hub for crypto miners, has unanimously approved on first reading an ordinance related to the development of data centers and cryptocurrency mining sites, according to local media.
As per the ordinance, crypto mining companies would be able to operate within city limits as long as they are housed in a fully enclosed building not located within 500 feet of any residential space.
Other requirements include a maximum sound level of 60 dBA measured at the property line. Applicants would also be required to submit multiple sound studies to qualify for permits in the first place.
This emphasis on sound regulation is particularly noteworthy because noise from mining facilities has triggered backlash across many regions in the US, specifically in Texas, where residents of Granbury in Hood County have filed lawsuits against mining operators.
According to the nonprofit environmental law firm Earthjustice, which filed the suit against Marathon Digital on behalf of concerned citizens, a number of locals have reported serious health problems, including permanent hearing loss, migraines, and sleep disruption.
For now, the Kingsport ordinance requires a second vote before it becomes law and is formally adopted. The latest development comes roughly a month after the Kingsport planning division put forward a formal recommendation.
Nevertheless, mining operators have already begun moving into the state to capitalize on the region’s affordable electricity and supportive regulations. Back in September 2024, Cleanspark reached a deal to acquire seven Bitcoin mining facilities in Knoxville, Tennessee.
Across the globe, regulations around the crypto mining sector remain a heated topic over how it may place undue stress on local power grids. While some countries have started taking firm action by introducing stringent restrictions, many have instead leaned on regulation to strike a balance and capitalize on the economic opportunity.
