At a time when many Bitcoin mining companies are flocking to parts of Canada for cheap electricity, the city of New York seems to have made up its mind to emerge as a key alternative. At least, that’s the signal the city administration is giving away as it approved a proposal by cloud mining service, Coinmint to take over an abandoned smelter for Bitcoin mining operations on January 30.
The New York Power Authority has since followed suit by approving 15,000 kilowatts of hydroelectric power to the new mining facility.
Coinmint already operates a Bitcoin mining facility in Plattsburgh, but wants to add another to its portfolio as the company is anticipating further growth in the worldwide cryptocurrency market.
One reason why the New York city administration seems keen on embracing mining farms is that new facilities such as the one by Coinmint will add to the city’s exchequer, while simultaneously creating new jobs.
As per the proposal plan, the power allocation to Coinmint would support a net capital investment worth $165 million, while adding 150 new jobs. The plan includes the renovation of a now-defunct metal smelting facility in Massena.
In addition to that, it will also require installation, as well as the operation of nearly 180,000 specialized bitcoin mining system by the end of 2019.
Once the new facility, dubbed the North Country Data Center Corp (NCDC) is functional, it is expected to account for as much as 15 percent of the total global cryptocurrency business.
According to media reports, the primary reason why Bitcoin mining businesses are increasingly becoming interested in the New York City is that it can offer cheap and reliable electricity. It also falls in line with the New York Power Authority’s goal of making the most out of the city’s hydropower to boost the local economy.
Additionally, the city considers the number of jobs that can be created while evaluating each new proposal. That’s always a big advantage for any sizeable mining facility as they usually look to hire local people for the maintenance of the complicated systems that operate round the clock.
Speaking of which, just like any other mining facility, the NCDC will also operate 24×7 and it will initially recruit 75 full-time employees in 2018, before hiring another 75 to the tally in 2019.
The jobs will include the following: IT technicians, installers and operational staff, security personnel, and electricians, with an average wage around $46,000.
Feature image by Mike Piechota