North Tonawanda, New York, has imposed a two-year moratorium on cryptocurrency mining operations following requests from local residents who complain about high levels of noise pollution from data centers.

The North Tonawanda City Council unanimously passed a temporary ban on cryptocurrency mining. The city is expected to shut down all mining farms and not expand any existing data centers. The city will update its zoning regulations over the next two years. The two-year moratorium applies to facilities that house large numbers of computers inside a building, modular facilities with processors in multiple storage containers, and server clusters.

The ban also applies to facilities where data is processed using artificial intelligence (AI), general computing, data processing and storage are performed, and other large-scale electronic centers are present.

The suspension of mining activities in the city is due to numerous complaints from local residents about the Digihost mining farm, which appeared in the city in 2022. Digihost mines cryptocurrencies using excess energy generated by the Fortistar gas power plant, which the company acquired in 2022. Locals are concerned that the noise emanating from the fans needed to cool the computers is negatively affecting their physical and mental health. Even after city officials have repeatedly discussed with Digihost operators the issue of reducing noise at the site, residents complain that the noise level has remained the same.

However, Ewelina Czapla, director of energy policy at the Digital Power Network, an advocacy group for bitcoin owners, expressed disappointment with the temporary moratorium. Czapla believes that noise issues can be easily addressed if data centers make a number of operational or technological changes. Many mining facilities have already switched from air cooling to immersion cooling, where mining rigs are submerged in a special liquid. In addition, many areas have trees planted to block noise, Czapla added.

A Texas court recently acquitted Marathon Digital mining facility manager David Fischer of noise violations.