Jacobson in Parliament: Data centers consume huge amounts of electricity

It was also hard to watch our great volleyball team lose to Penn State, but this loss could benefit them heading into the playoffs.

Cryptocurrency mining

Last week, the North Platte Planning Commission discussed possible regulations to limit the expansion of cryptocurrency miners in North Platte. This is an issue that caught my attention during the last legislative session. A bill has been introduced that, if passed, would have limited any steps cities and counties could take to make zoning requirements more restrictive for crypto miners compared to other commercial businesses seeking to locate within their jurisdiction.

The bill has been referred to the Banking, Commerce and Insurance Committee, of which I am currently Vice-Chairman.

The more I looked into the issues, the more I realized that in addition to the noise they create and the lack of any real economic benefits (jobs, property taxes, income taxes, etc.), these facilities are also large consumers of electricity.

The current largest facility in the state of Nebraska is located on the eastern edge of Kearney. Housed in steel storage containers, this facility uses more electricity than all other Kearney users combined. Yes, more than the entire town of Kearney.

As these facilities continue to grow, demand on our electric grid limits efforts to attract manufacturing and other traditional businesses to locate in Nebraska. Traditional companies hire workers, build buildings that expand our property tax base, and attract supporting businesses. In my opinion, there is no question which industry would be preferred. The Kearney plant does pay sales taxes on the energy it uses, but the net cost to communities is out of balance.

What exacerbates this problem is the rapid rise in Bitcoin price (peaking at $100,000/coin), the increasing prevalence of artificial intelligence, and the need for computer memory for this technology.

Today, most of these companies are headquartered out of state and provide no real economic benefit to Nebraska compared to our power resource needs. I worked with the Governor’s Office to draft a bill to be introduced in the 109th Legislature to give cities and counties more tools to control the expansion of these companies.

Because there are federal restrictions on discrimination against these companies, we must look for creative solutions. One option is to introduce a new tax that would ensure they make the same financial contribution to communities as other businesses, or alternatively, discourage too many from entering the state. Many new establishments are popping up in rural Nebraska that owners think no one will notice. I noticed it. I will keep you updated on further action on this issue.

I look forward to continuing to hear from you on the issues that matter to you. It is an honor to be your Senator and I will continue to do my best to make a positive difference for the District and the state. You can reach me at [email protected] or 402-471-2729.

Mike Jacobson represents Lincoln, Logan, McPherson, Thomas, Hooker and the majority of Perkins Counties – Dist. 42 – in the Nebraska Legislature.

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