Plattsburgh proposes 12 month land use moratorium for crypto mining and AI centers

The city of Plattsburgh in New York State recently held a public hearing to consider a proposed moratorium on land use for operations consuming significant energy, including cryptocurrency mining and artificial intelligence data centers.

Moratorium details and scope

Mayor Wendell Hughes and the Plattsburgh common council listened to public input concerning a draft law that would enact a temporary ban on land use approvals for “certain high energy computing facilities.” The proposal specifically targets facilities that would require 300 kilowatts of electricity or more, effectively halting new crypto mining and AI data center projects for a period of 12 months should the law be enacted.

The proposed legislation is designed to give the city time to reassess the impact of such operations on the local power grid and community resources. Local authorities have expressed concerns about the energy demands and environmental implications of these industries.

Residents and officials at the hearing pointed to the significant power usage associated with crypto mining and AI, emphasizing the importance of evaluating the long term effects on electricity costs and infrastructure.

As of June 11, Mayor Hughes had not provided formal approval for the moratorium. The city council has scheduled another meeting for September 17 to further discuss and potentially vote on the matter.

Background: Plattsburgh’s approach to high energy use industries

Plattsburgh gained national attention in 2018 by becoming one of the first cities in the United States to enforce an outright ban on Bitcoin (BTC) mining. That moratorium followed complaints from residents about surging electricity bills linked to intensive cryptocurrency operations and lasted for 18 months.

Many companies previously engaged in crypto mining in Plattsburgh and other parts of the United States have recently shifted their focus toward artificial intelligence and high-performance computing. These transitions have come as the industry faces rising power costs, declining cryptocurrency prices, and greater operational challenges.

Hyperscale Data, a firm once active in the region, recently concluded its Michigan Bitcoin mining activities after a significant 79% decline in its BTC holdings.

Mini dictionary: Hyperscale Data, a company specializing in running large data centers for cryptocurrency mining and digital infrastructure, has reduced its BTC operations following changing market dynamics.

Comparison: Previous and proposed moratoriums

Plattsburgh’s previous action in 2018 focused solely on cryptocurrency mining. The new proposal now includes artificial intelligence data centers, reflecting growing concern over high energy computing in general. The shift illustrates the city’s intent to proactively address developments in both sectors that could affect power usage and local infrastructure.

The coming months will determine whether the proposed moratorium becomes policy and how it might shape the future of high power consumption technology operations in Plattsburgh.