Simple Mining data center hoping to come to Madison
The Madison City Commission is considering a proposal from Simple Mining to build a 10-megawatt digital currency mining facility. This comes after a previous project with Giga Energy fell through due to a dispute over interruptible electrical load requirements. Simple Mining has committed to an interruptible load and will seek a conditional use permit.
The Madison City Commission is exploring a new proposal from Simple Mining to construct a 10-megawatt digital currency mining facility in Madison, South Dakota. Matt Hein, a representative for Simple Mining, presented the project during an introductory discussion on July 6, emphasizing that the facility would pose no financial risk to the city and would serve as a long-term, profitable customer for the city's utility.
This new opportunity follows the collapse of a similar project with Giga Energy, which was scrapped after Giga Energy changed its electric load requirements from interruptible to non-interruptible, a non-negotiable issue for the city. Simple Mining, founded in 2021 in Cedar Falls, Iowa, assured commissioners of its commitment to remaining interruptible, using excess electricity and shutting down during high electrical demand.
The proposed facility, to be located on city-owned property north of Highway 34 and west of the city's southeast substation, would be financed by Simple Mining, including any necessary infrastructure upgrades. It plans to start with an air-cooled system before transitioning to a quieter, more efficient closed-loop, hydro-cooled glycol system that will not connect to local water. City officials anticipate the project could generate significant electrical funds, potentially leading to lower resident rates. The next step for Simple Mining is to seek a conditional use permit from the City Planning Commission, with Mayor Roy Lindsay and the commission expressing positive interest.