Arkansas legislators have introduced a bill to limit bitcoin mining near military bases. Senator Ricky Hill and House Speaker Brian Evans present Senate Bill 60, which proposes to amend the Arkansas Data Centers Act of 2023 to include a 30-mile exclusion zone around military facilities, camps, hospitals, clinics, and arsenals.
The measure, however, has a grandfathering provision that allows facilities that were completely constructed and operational before December 31, 2024, to continue operating. Interstate Holdings, a Florida-based real estate investment firm, is developing a mining project at Little Rock Air Force Base in Cabot, Arkansas, which directly impacts this proposed legislation.
Concerns about the facility’s proximity to the air base have sparked debate, with Senator Hill calling it a “national security issue.” Cabot Mayor Ken Kincade noted that noise pollution from mining operations harms residents, pets, and the environment. Despite these concerns, Dustin Curtis, Vice President of Interstate Holdings, defended the proposal, claiming that the facility follows state and federal rules and runs at a lower noise level than a nearby freeway.
The federal government took a similar action in May 2024, blocking a Chinese-related crypto mining operation near Francis E. Warren Air Force Base in Wyoming. It also underscores broader worries expressed by U.S. politicians, including Senator Elizabeth Warren, who has criticized foreign-owned cryptocurrency mining facilities for potential environmental and security dangers.
Noise pollution from cryptocurrency mining has been a persistent problem in Arkansas. The NewRays Bitcoin mining company claimed in October 2024 that discriminatory noise legislation unfairly targeted them. A cease-and-desist order temporarily shut down the Cabot facility, but it reopened after fulfilling FEMA compliance requirements.
The draft measure will be evaluated by the committee in the following days, indicating more examination of the relationship between cryptocurrency operations and national security objectives.
