Anyone looking to set up a cryptocurrency mining facility in the unincorporated parts of Sebastian County will have to make sure it won’t disturb the locals. At its meeting on Tuesday, the Quorum Court voted 12-0 to approve an emergency ordinance to limit the external noise produced by such data centers. County Judge Steve Hotz confirmed that he was not aware of any plans for a data center in the area.
He noted that data centers can be incredibly noisy unless they are built properly. For example, Faulkner County’s data center near Vilonia produces a sound described as a “nonstop train or jet”. This is due to the large amount of electricity the computers in the center use, generating a proportional amount of heat that requires cooling with water and fans.
In response to this issue, the Arkansas Legislature passed Act 851, the Arkansas Data Centers Act of 2023, which will take effect on August 1. It sets out regulations for digital asset mining businesses to operate in the state, including a section prohibiting discrimination against them by local governments. This includes limiting the sound decibels generated from residential mining.
In order to comply with the Act, the Association of Arkansas Counties advised Sebastian County to enact an ordinance before August 1. The ordinance requires any property owner and operator proposing to build a data center to notify all residents within a half-mile radius of the site, as well as carry out sound studies and develop a building plan that includes noise reduction measures. The operator must also do annual noise studies.
The ordinance states that a violation will be considered a misdemeanor, with a conviction resulting in a fine. If the prohibited act continues, an injunction in court of proper jurisdiction may be sought and awarded.
Tom Harford, founder and board director of the Arkansas Blockchain Council, said the requirements the ordinance articulates are “very reasonable” and align with the council’s guidelines for crypto mining centers. He added that ordinances like this one are beneficial as they attract and encourage businesses that operate with best practices and high standards.
Although Sebastian County Sheriff Hobe Runion questioned how the ordinance will be enforced, Dan Shue, county prosecuting attorney, said the Quorum Court could vote to repeal or modify it later if necessary.
