Last week, the Bitcoin mining center in the Norwegian municipality of Hadsel permanently shut down due to noise complaints. However, the closure has led to a 20% increase in electricity bills for local residents.

According to a local report, the crypto mining center had been a source of frustration for both politicians and neighbors. The power-hungry facility consumed approximately 80 GWh of electricity annually, sparking discontent among nearby residents due to its massive energy usage and the constant noise from cooling fans.

“This amount of electricity is equivalent to the annual consumption of around 3,200 households,” the Norwegian Broadcasting Corporation (NRK) reported. The continuous noise from fans running 24/7 to cool the computers was a major grievance.

In a 2022 report, it was stated that the noise from the crypto facility drove residents to despair. The company behind the operation defended itself, claiming that the noise levels were within national limits.

“It's over now. We are very, very happy about the closure in Hadsel,” said Kjell-Børge Freiberg, the mayor of Hadsel, in a statement to NRK. He added that the data center had been a significant source of frustration for both politicians and residents for the past three years.

Increase in Electricity Costs for Residents

However, the shutdown of the Bitcoin mining operation has led to a noticeable rise in electricity costs for local residents, as the facility accounted for 20% of the income for the local grid operator Noranett.

Noranett, one of 85 grid operators in Norway, is responsible for distributing electricity from power plants to consumers. With the closure of the data center, remaining customers are now required to cover the lost income, resulting in higher bills.

Robin Jakobsen, network manager at Noranett, explained that an average household, which previously paid between 12,000 and 13,000 NOK annually for electricity, would now have to pay an additional 2,500 to 3,000 NOK. The mayor highlighted that the municipality is now searching for new projects to utilize the surplus energy, with hopes to reduce electricity costs again in the future.

“This is the regulation of our power system, which is beyond our control,” the mayor concluded.