City Commission approves data center agreements in final public steps
The Madison City Commission approved land-lease and electrical-service agreements for Simple Mining to build a four-module cryptocurrency mining data center near the Madison substation. The project can consume up to 10 megawatts, will use minimal trucked water through a closed-loop cooling system, and was approved despite residents’ concerns about noise, trees, property values and the site’s history.
The Madison City Commission approved final agreements allowing Simple Mining to construct a small cryptocurrency mining data center next to the Madison substation off Highway 34. The agreements include a $10,000 land lease, a 10-megawatt interruptible electricity limit and financial assurances protecting the city if the project fails. Construction could begin in the fall, subject to the city issuing a building permit.
The four-module facility will include mining servers and ground-level cooling equipment. Simple Mining’s Matt Hein said the closed-loop system will require only limited water replenishment after being filled, with water delivered by truck rather than through the city system. The Board of Adjustment previously approved the project with conditions covering noise, fencing, lighting, cameras and landscaping.
Residents including Michael Johnson and Craig Hofman opposed the project, citing concerns about noise, tree cover, property values, the site’s former use as a junkyard and the city’s public process. Mayor Roy Lindsay and city officials said the project could increase electrical revenue and would not require significant municipal water use, while commissioners asked staff to examine additional tree planting.