Plattsburgh considers moratorium on cryptocurrency mining and AI facilities

Plattsburgh considers moratorium on cryptocurrency mining and AI facilities

A New York municipality that previously implemented an 18-month prohibition on Bitcoin mining is now deliberating a new temporary ban that would encompass AI data centers alongside various cryptocurrency mining facilities.

A public hearing took place in Plattsburgh, a municipality located in New York state, where officials discussed implementing a temporary land use restriction targeting facilities such as cryptocurrency mining operations and AI data centers.

During a hearing held on Thursday, Mayor Wendell Hughes of Plattsburgh, along with the common council, listened to public testimony regarding a proposed ordinance that would establish a temporary prohibition on land use for "certain high energy computing facilities," encompassing both artificial intelligence operations and cryptocurrency mining. Should the moratorium receive approval, it would suspend permits for any operations demanding 300 kilowatts (kW) or greater for a period of 12 months.

According to reports from Tuesday, the mayor had not yet given his approval to the moratorium. Another meeting has been scheduled by the council for Sept. 17.

In 2018, Plattsburgh became one of the pioneering jurisdictions across the United States to implement an outright prohibition on Bitcoin (BTC) mining operations, responding to local residents' worries regarding electricity expenses. The moratorium that was passed remained in effect for 18 months.

Numerous cryptocurrency mining enterprises have shifted their business operations toward artificial intelligence and high-performance computing in recent times, facing challenges such as increasing difficulty levels, escalating power expenses, and declining token valuations.