Bitcoin miner Revolve Labs proposes $60m data center in Minnesota

Colorado-based Bitcoin mining company Revolve Labs has announced plans to build a $60 million data center in Glencoe, Minnesota, as part of its effort to expand its mining capacity. 

The proposed facility would include one or two AI data centers, cooling systems, and backup generators, according to the Minnesota Star Tribune. Its goal is to bolster the company’s ability to process Bitcoin (BTC) transactions while addressing local concerns about noise pollution.

The facility, currently in the preliminary planning stages, would employ around 10 people and could cost between $40 million and $60 million.

The company discussed the project in a September meeting with the Glencoe Economic Development Authority. The site, which spans approximately 6.2 acres, would house both the data center infrastructure and a new power substation to support the expansion, per the Star Tribune. 

Bitcoin mining is a resource-intensive process where specialized computers solve complex mathematical problems to validate transactions on the Bitcoin network. In return, miners receive Bitcoin as a reward. Data centers like the one Revolve Labs plans to build are essential for supporting these operations, which require substantial computational power and energy.

In other crypto and Minnesota related news, the Federal Reserve Bank of Minneapolis published a working paper on October 17, recommending governments either ban or tax Bitcoin to maintain permanent primary deficits.

The paper labeled Bitcoin as a “balanced budget trap” that hinders policy implementation, especially for governments relying on nominal debt.

Bitcoin mining noise complaints

Mining facilities in Glencoe have sparked some controversy due to the noise generated by the mining equipment and cooling systems, according to the Star Tribune.

Local residents have raised concerns about noise levels reaching up to 85 decibels, comparable to the sound of a lawnmower. Revolve Labs has faced similar complaints in other locations, including Windom, Minnesota, where the company withdrew a previous expansion proposal following community pushback.

Similarly, Texas communities have inherited Bitcoin mining facilities and are attracting companies like Marathon Digital and Hut 8 due to their low energy costs and flexible power grid.

However, the influx of mining operations in Texas has caused noise levels as high as 91 decibels, leading to hearing loss, headaches, and sleep disturbances among local residents. These health issues have particularly affected older residents, raising concerns about the impact of mining on community well-being.

Despite concerns of noise, Revolve Labs operations have generated significant economic benefits for the city of Glencoe. According to Dave Meyer, general manager of the Glencoe Light and Power Commission, Revolve Labs’ mining operations have brought in more than $500,000 in net annual revenue for the city. 

These funds have been used to support public infrastructure projects, such as streetlight improvements, while helping to prevent an increase in electrical rates for local residents.