The US rural communities bearing the brunt of Bitcoin mining

In the quiet village of Dresden on the western shore of Seneca Lake in thestate of New York, the fire whistle blows like clockwork at noon every day. Residents don't mind; it's a familiar sound that blends into the rhythm of their small-town life.

But there's one noise some of the 300 villagers cannot stand and that's the constant, mechanical droning of Greenidge Generation. This former coal-fired facility is now a natural gas "peaking plant" that supplies electricity to New York during high demand. Since 2019, it has also powered an energy-gulping Bitcoin mine.

Locals say some days the sound it emits is like a refrigerator humming in the background, but when the wind shifts just right, it becomes more of a roar.

Winton Buddington, who owns a home in Dresden, said "it was a nice and peaceful community," until 2017. "Then, Atlas Holdings purchased the property."

Retired nurse Beth Cain says research shows that constant noise "does affect people. It creates stress for your system," she said, adding that it's like "having tinnitus."

But the unwanted soundscape is not the only concern locals share about the plant, which also discharges hot water into the lake and emits carbon dioxide and other greenhouse gases.

Many in the community, including Yvonne Taylor, vice president of Seneca Lake Guardian, a grassroots environmental advocacy group in upstate New York, fear that Greenidge poses a threat to the broader region whose wineries and Mennonite farms are big visitor attractions.

"[The wine and tourism industry] is our driving economic engine, and all of those jobs rely heavily on clean air and clean water for survival," Taylor said.

Large round bales of hay on a field with an industrial chimney stack billowing smoke into the air in the background — The region has long been known for its vinyards and agriculture Image: Ted Shaffrey/AP/picture alliance

Bitcoin farms in rural America

Large-scale crypto-mining operations such as the one in Dresden consume massive amounts of energy, using thousands of computer servers to compete in solving mathematical problems that validate blockchain transactions. By 2021, the Greenidge facility was generating about 44 megawatts to mine Bitcoin, which is enough to power up to 40,000 homes — depending on their consumption levels.

"Each one of those machines has to solve a puzzle. Each machine can solve that puzzle about 100 trillion times every second," said Colin Read, author of The Bitcoin Dilemma: Weighing the Economic and Environmental Costs and Benefits.And that requires a lot of energy, which generates a lot of emissions.

Citing Greenidge's own data, the environmental law group Earthjustice said the facility emitted almost 800,000 tons of carbon dioxide and CO2 equivalents in 2023 — on a par with the tailpipe emissions of over 170,000 cars.

According to the US Energy Information Administration, 137 cryptomining facilities were already operating in the country at the start of 2024. The current government has not yet released new figures, but Troy Cross, philosophy professor at Reed College in the US city of Portland and senior fellow at the nonpartisan Bitcoin Policy Institute expects that under self-proclaimed "crypto president" Donald Trump, Bitcoin companies will face fewer barriers when scouting for new mining locations.

"Trump will make it easier for the large Bitcoin mining companies in the US, and especially in West Texas," he said, in reference to the state being a leading producer of coal and natural gas. It's also among the top states in solar and wind energy generation.

Since coming to office, the president has already formed a working group to draft pro-crypto regulations and has announced a national reserve to stockpile digital assets. In a sharp reversal of his earlier stance that Bitcoin was "not money" and a "scam," he has even launched his own meme coin.

Taylor says Bitcoin mines are "spreading across the country like a cancer," adding that "slick crypto corporations" are popping up in rural underserved communities with promises of job creation and earnings.

What is cryptocurrency?

But pointing to the fact that the Greenidge Bitcoin mine employed 48 people full-time in 2022 — about as many as in a typical McDonald's — she said experience shows that such claims "fall short."

Bitcoin mining's environmental impact

Margot Paez, of the Bitcoin Policy Council, who studies cryptocurrency mining in New York State says Greenidge's decision to co-locate its Bitcoin mine with a natural gas plant is a "terrible" idea. But she adds that the site is just "one bad apple," suggesting that Bitcoin miners should tap into renewables or support grid balancing.

In a draft environmental impact assessment of the 11 known crypto facilities within its borders, the state said the energy use from such operations "may contribute to challenges meeting New York's renewable energy transition goals."

The Greenidge plant's water use is also a concern for residents and environmentalists. Keeping the crypto mining computers running without overheating requires massive amounts of water. The facility is permitted to draw up to 139 million gallons (525 million liters) from Seneca Lake every day and dump back as many as 134 million gallons.

Having been used for cooling, however, the water returned to the lake is much warmer than when it was taken out. Temperatures range between 86 degrees Fahrenheit (30 degrees Celsius) in the winter and 108 F (42 C) in the summer — which some locals say makes the lake too warm for kayakers and swimmers to enjoy.

Residents also worry the warm water could affect aquatic life and trigger more harmful algae blooms in the lake. In 2024, the state environment authorities recorded 377 algal blooms — up from 50 in 2023. Exposure to blooms can cause rashes, coughing, sore throat, stomach pain, and vomiting.

Locals have been involved in legal action that has so far failed to halt the facility’s operations. They are also part of a network of experts and activists from affected communities across 17 states that has reached out to Trump’s crypto working group to explain the impacts of cryptocurrency policies on rural areas. They have not yet received a response.

A water bird swims in a lake coated in algae — Algae blooms lead to depleted oxygen in the water, leading to fish deathsImage: Soeren Stache/dpa/picture alliance

Will it harm tourism?

In Dresden, where some residents rent out their properties to visitors who come for the lake, there are fears that proximity to Greenidge will hurt the local rental market.

Even 10 miles (16 kilometers) away in the city of Geneva, residents are concerned about the potential impact of the Bitcoin mining facility. Vinny Aliperti, owner of Billsboro Winery, said the plant hasn't affected his business yet — but he's confident it will.

"Clean lakes are a big part of agrotourism. They're the reason people visit the area and the wineries," he said.

Greenidge, which describes itself on its website as an "environmental leader in power generation and Bitcoin mining," had not responded to a request for comment by the time of publication.

The Torrey Town Board, which governs Dresden, said the plant has complied with all its codes, including an independent noise study.

"The Greenidge power plant has been an important part of the Town of Torrey since the 1930s, remaining so today as a valuable employer and community partner," it said.

The crypto mine has contributed to the community by donating to Dresden's volunteer fire department and the village playground and supporting businesses in the region during theCOVID-19 pandemic.

"They've done those things, but that's not something that we consider to be worth the trade-off of the pollution and the impact they're having on the environment," Buddington said.

Edited by: Tamsin Walker