The case in summary This week, a data center that mined cryptocurrency ended its operations in Hadsel municipality. The data center has been a source of frustration for politicians and neighbors alike. The closure of the data center has led to an increase in internet rent for the residents of the municipality, as the data center accounted for 20 per cent of the income of the local network company Noranett. This means an annual increase of between NOK 2,500–3,000 for a normal household. Mayor Kjell-Børge Freiberg says that the municipality will now hunt for new projects that can take over the electricity that is now left over after the data center ceased operations. The summary is made by an AI service from OpenAI. The content is quality assured by news’s journalists before publication. – There is now a full stop. We are very, very happy with Hadsel. This is what mayor Kjell-Børge Freiberg (H) told news on Thursday. For three years, a data center that mined cryptocurrency has been a headache for politicians – and neighbors – in the municipality. Because even though the politicians gave the project the thumbs up at the time, they have deeply regretted it afterwards. – People get mad, cursed and despair Mining of cryptocurrency is power-intensive and requires powerful computers to solve complicated calculations. As a reward, you get cryptocurrency again, which in turn can be converted into ordinary currency. In Hadsel, the data center has had a consumption of around 80 GWh annually. This corresponds to approximately the annual consumption of 3,200 households. But these machines also require good cooling – and fans that have been running around the clock have been a source of great frustration for the neighbours. – People get mad, cursed and despaired by this, said neighbor Harald Martin Eilertsen to news in 2022. This is what it sounded like when the data center in Hadsel municipality was in operation in 2022. Subsequently, several noise-reducing measures have been taken, such as noise barriers and insulating walls. This week, however, it was over. The company Stokmarknes Datasenter ceased operations after the temporary permit they had from the municipality expired. – There has been a noise problem in the area, so it has been a challenging issue for many people, continued Freiberg. But as you know: After the sweet itch, comes the sour sting. 20 per cent more expensive internet rent For the data center has the largest customer of the local internet company Noranett. On Friday, the flip side of the coin came in the form of an increased bill for online rent for the residents of the municipality. The data center accounted for 20 percent of Noranett’s income. Now it is the remaining electricity customers who have to pay that bill. – When such a large individual customer switches off overnight, it has an impact, says Robin Jakobsen, network manager at Noranett. Robin Jakobsen is network manager at the network company Noranett. Photo: Trollfjord Already next month, the bill will increase by 20 per cent. Jakobsen estimates that a normal household pays NOK 12-13,000 annually (including charging an electric car) in online rent. – After the adjustment, it will be between NOK 2,500-3,000 more expensive a year. Fitters from Noranett had to go out to repair power lines after the extreme weather in Ingunn earlier this year. Photo: Noranett Mayor: – We have to deal with it After the news of the price increase became known on Friday, news is talking to Mayor Freiberg again, and the jubilation has died down somewhat. – This is how the regulation of our power system is, which lies outside the municipality’s authority and power. We have to deal with that. Kjell-Børge Freiberg (H) became mayor of Hadsel municipality last year. Previously, he was oil and energy minister from 2018 to 2019, then for the Progress Party. Photo: Sofie Retterstøl Olaisen / news The mayor says that they will now hunt for new projects that can take over the electricity that is now left over after the data center ceased operations. He hopes that will bring down the bill for online customers again. – We work every day to facilitate the industrial activity that we want to have in the municipality. So it is not certain that we will be able to solve it in one month, but we work every day to facilitate business development. He believes that electricity and the network capacity that is now left over gives the municipality new opportunities. – Yes, it is definitely an opportunity for the municipality, and makes us even more attractive. Then we want industry that creates value – so no one thinks we want a new data centre. Published 13.09.2024, at 19.25 Updated 13.09.2024, at 20.45
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Data center shut down operations – now residents will receive a shock bill – news Nordland
