Bitcoin Mining as Economic Development

MASSENA — A Bitcoin mining center planned for the former Alcoa East plant could bring in at least a $165 million investment and 150 jobs.

North Country Data Center has requested a 15,000 kilowatt allocation of preservation power from the New York Power Authority for its proposed operation at the now-vacant Alcoa East plant. The NYPA Board of Trustees took no action on the request during its meeting Tuesday.

“The Coinmint power allocation was not approved by the NYPA Board of Trustees on Tuesday. The Board decided to defer any action on this item until a future board meeting,” a NYPA spokesman said in an emailed statement.

Keith T. Hayes, NYPA’s vice-president of economic development, explained the project to trustees during their meeting this week.

“The allocation would support the creation of 150 new jobs and a minimum investment of $165 million. NCDC is signing a long-term contracting lease agreement with Alcoa for the entire property and, once the project is complete, it expects to handle 15 percent of the world cryptocurrency business, also known as Bitcoin,” Mr. Hayes said.

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“Alcoa has been working with a third party on a potential economic development project, but no announcements have been made,” Alcoa spokesman Jim Beck said in an emailed statement.

Mr. Hayes said the average wage and benefits would be about $46,000 per year for the 150 employees, which he called significant for St. Lawrence County. He said the jobs could include data scientists, technicians and engineering positions.

“Typically you see these jobs overseas versus here. We thought that the commitment to the north country for that amount of jobs is certainly significant and would be impactful,” he said.

The New York Times reported in September that one of the world’s largest Bitcoin-mining facilities is in China. It operates 25,000 computers with a staff of about 50.

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