Cryptocurrency mining plant brings nuclear fears to the Northern Territory

NORTH TONAWANDA, N.Y. (WBEN) North Tonawanda’s Digihost cryptocurrency mining plant on Erie Avenue has raised some eyebrows about its new partnership with NANO Nuclear Energy.

Mayor Austin Tylek told WBEN on Wednesday that it was first brought to his attention about a month ago.

“There is still a lot of information we are trying to collect,” Tylek said.

Digihost, which has been operating in the NT for nearly two years, is turning to a nuclear company to find a new source of energy.

“These Bitcoin mining centers use a lot of energy, and New York State has some pretty aggressive climate goals, so they’re trying to look at different ways to find new sources of energy,” he said.

Tylek went on to say that with every energy source, there are pros and cons.
“Solar panels, where do you put the waste? Wind turbines, where do you put the waste? Nuclear, where do you put the waste?”

He added that nuclear technology is a new type of industry that they are still exploring.

In a memorandum of understanding (MOU) between NANO Nuclear and Digihost, which was filed with New York State in December, the two companies plan to drive the transition to carbon-free energy at the Digihost plant. The state aims to create a net-zero emissions grid in its future. NANO Nuclear is advancing clean energy through microreactors under development.

“It might not necessarily be bad, but does it have to be in our backyard?” Tylek asked.

The City of North Tonawanda has an open line of communication with Digihost.

The Digihost plant has been a source of complaints in the city since it began operating in February 2022. Many residents complain, describing the noise from the facility as a constant hum that can be heard a half-mile away.

Last July, North Tonawanda approved a two-year moratorium on cryptocurrency mining facilities. Digihost’s factory will not be affected by the ban, but it will not be able to expand its operations.

Tylek said the city must make sure its zoning laws are up to date and plans to meet in the coming weeks with community environmental activists.