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 efforts to expand its mining capacity.

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

The facility, currently in the preliminary planning stage, will employ approximately 10 people and cost between $40 and $60 million.

The company discussed the project at a meeting with the Glencoe Economic Development Authority in September. Spanning approximately 6.2 acres, the site will house both data center infrastructure and a new power substation that will support the expansion, according to the Star Tribune.

Bitcoin mining is a resource-intensive process in which specialized computers solve complex mathematical problems to verify transactions on the Bitcoin network. In return, miners receive Bitcoin as a reward. The data centers that Revolve Labs plans to build are necessary to support these operations, which require significant amounts of computing 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 ban or tax Bitcoin to maintain persistent primary deficits.

The article labeled Bitcoin a “balanced budget trap” that impedes policy implementation, especially for governments that rely on nominal debt.

Bitcoin mining noise complaints

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

Local residents have raised concerns about noise levels of up to 85 decibels, which sounds like a lawnmower. Revolve Labs has faced similar complaints elsewhere, including in Windom, Minnesota, where the company withdrew its previous expansion proposal following community outcry.

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

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

These funds were used to support public infrastructure projects such as improving street lighting and to help local residents avoid increases in electricity tariffs.