An unexpected situation has unfolded in the Norwegian commune of Hadsel: following the closure of a major cryptocurrency data center, local residents have faced a 20% increase in electricity bills.
Impact on Hadsel Commune
After the closure of the cryptocurrency center, residents of the Norwegian commune of Hadsel faced a 20% increase in electricity bills. The data center, which was involved in Bitcoin mining, was one of the largest energy consumers in the region, consuming about 80 GWh annually—equivalent to the energy usage of 3,200 households.
Economic Role of Data Center
The data center provided 20% of the revenues for the local energy company Noranett, enabling them to maintain low tariffs for the population. However, after its closure, the company lost a significant portion of its income and was forced to redistribute costs among the remaining consumers. Now, the average family has to pay an additional $2,500–$3,000 per year for electricity.
Actions by Local Authorities
Local authorities acknowledge that the situation is challenging but emphasize that these are temporary difficulties, and they are working to attract new large energy consumers. Municipal officials are considering developing other energy-intensive industries, such as data centers or manufacturing plants, to compensate for the lost revenue and stabilize prices for residents.
Hadsel is experiencing a difficult period after the closure of a major cryptocurrency center, which led to an increase in electricity tariffs. Local authorities are working to resolve this problem and attract new investments to the region.
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