Tyler commission rejects proposed bitcoin mining data center after community pushback

News Clip2:20KETK NBC·Tyler, Smith County, TX·7/8/2026

The Tyler Planning and Zoning Commission voted 5 to 2 to deny a special use permit for a proposed Bitcoin mining data center by Bokun Core near downtown. Residents expressed strong opposition, citing concerns over water use, potential health impacts from noise, and limited job creation. The decision was a win for the community, though the applicant may appeal.

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Gov: Tyler Planning and Zoning Commission, Tyler City Staff

The Tyler Planning and Zoning Commission recently rejected a proposed Bitcoin mining data center by Bokun Core following significant community opposition. The commission voted 5 to 2 to deny a special use permit for the project, which was planned for East Irwin Street and North Ross Avenue near downtown Tyler.

Residents packed City Hall to voice concerns about the facility's potential impact on their neighborhood, focusing on issues like water consumption, potential health risks from constant low-frequency noise, and the belief that the 7-10 jobs created would not outweigh the community burden or policing costs. One resident questioned the origin of water for the "closed loop system," stating that "water doesn't magically appear."

While some supporters argued that Bokun Core had addressed many concerns and found solutions to problems encountered by other data centers, and a company representative stated the project would not impact nearby electric bills, the commission ultimately sided with the community. Data centers currently lack a specific zoning category in Tyler, and the applicant, Bokun Core, retains the option to appeal the decision.