Hopkinsville Torn Between Data Center Benefits and Environmental Concerns

For three years, a bitcoin-mining operation has been running quietly inside Hopkinsville Electric System's Holland Substation in Kentucky. The facility, owned by North Campbell Land Co., consists of 22 modular units housing specialized machines used to mine Bitcoin.

The low-profile operation has now come under closer watch as Hopkinsville debates its first data center rules. NCLC representative Thomas Masiero said the existing site could eventually shift to computing work other than bitcoin mining and that there have been no noise or water complaints during its three years of operation.

However, residents at a recent hearing made clear that any financial upside has to be weighed against local environmental and quality-of-life concerns. The proposal for new zoning rules aims to cap large-scale facilities below 75 megawatts and 50,000 square feet, with buffer distances set at 300 feet for small sites, 500 feet for mid-size ones, and 1,000 feet for large facilities near homes or public properties.

Attorneys for HES and NCLC argued that the draft is too restrictive, while residents pushed back with calls for stronger protections. The city's Community and Development Services is drafting Hopkinsville's first data-center zoning amendment before sending it to City Council for final approval.