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Old Gas-Powered Plants Come Back Online in New York to Feed Bitcoin Mining Farms — Activity that Sparks Legal Disputes and Raises Environmental Alerts
Bitcoin mining has become a highly profitable business. However, the activity also generates controversies, mainly regarding energy consumption. In New York, old plants are being reactivated to meet the demand of mining farms. The result is environmental impacts and legal disputes.
What Are Mining Farms
Mining farms are data centers filled with specialized machines called ASICs. These computers solve complex calculations to record transactions on the Bitcoin blockchain.
Each time a new block is added to the chain — which occurs every 10 minutes — the miner receives 3.125 bitcoins. This amounts to about US$ 101,606, or R$ 570 thousand.
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But mining is not simple. The process requires a lot of electrical energy. And the harder it becomes to find new blocks, the more computers are needed, which further increases energy consumption.
Cheap Energy Is the Key to the Bitcoin Business
The secret to profitability lies in the cost of electricity. Regions with cheap energy attract miners. Upstate New York, for example, has a large supply of hydropower.
However, mining farms are not seeking this type of clean source. The focus has been on old plants, mainly powered by natural gas.
Greenidge Generation Reactivates Plant to Mine
A notable example is the Greenidge Generation plant, near Seneca Lake. Previously coal-powered, it was converted to a combined-cycle plant in 2017. In 2020, it gained a mining farm next door.
As a result, gas consumption increased. Power production rose to meet both the electrical grid and the new mining operation. In 2020, there were 215,588 MWh for the grid and 132,215 MWh solely for mining bitcoins. Carbon emissions from the plant increased sixfold.
The Greenidge became a model. Since then, another 49 similar plants in New York have been viewed as potential sources for this type of operation.
Conflict with Environmental Law
Despite the growth, Greenidge faced resistance. The New York Department of Environmental Conservation denied the company’s license renewal in 2022. The justification was non-compliance with state climate law, which requires emission reductions.
Even so, the plant continues to operate. Legislation permits operation while the legal process is ongoing.
North Tonawanda Case Sparks Protests
Another case that drew attention was the North Tonawanda plant, near Niagara Falls. The old plant was purchased by the Canadian company Digi Power X to supply a new bitcoin farm.
Local residents reported a “constant humming” coming from the data center’s fans. There were also complaints about water usage — about 1.9 million liters per day, even though it is not potable, putting pressure on the local sewage system.
The case went to court. The New York Supreme Court ruled in November 2024 that the sale of the plant needed to be reevaluated. The decision was motivated by potential violations of climate law. But, just like with Greenidge, the operation continues.
Federal Government Changes the Game
At the national level, the landscape changed with Donald Trump’s rise to power. The new administration lifted restrictions on fossil fuel use. It also announced plans for a more flexible regulation for the cryptocurrency sector.
This change favors mining companies, even with ongoing local conflicts and legal disputes.
According to the U.S. Energy Information Administration, cryptocurrency mining now accounts for up to 2.3% of total electricity consumption in the country. This reinforces the debate about the environmental impact of the activity, especially in places where farms use fossil fuel energy.
Even in the face of lawsuits, complaints, and environmental actions, the Greenidge and North Tonawanda plants continue to operate. Fed by gas and focused on bitcoin mining, these structures illustrate the challenges of balancing technological innovation with the demands of environmental legislation.
With information from Xataka.
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