Cryptomine facility headed for New Zealand’s South Island

Contact Energy has received the green light to build a cryptomine data center in New Zealand after approval was granted for the company’s resource consent application. This comes despite the significant amount of controversy around proposals. Critics argue that the facility will not benefit Central Otago.

The company is set to build its facility on a two-lot, 1.6-acre subdivision, which will be operated by Lake Parime, under a lease agreement with Contact Energy. Speaking about what informed Contact Energy’s decision to choose the location, head of hydro generation Boyd Brinsdon said in evidence that being next to the Clyde power station reduces transmission and distribution losses.

Hearings commissioner Bob Nixon approved the facility under the condition that the company will carry out an assessment of noise levels so that they don’t exceed limits dictated by the consent. Likewise, according to the company, the facility would operate when electricity demand was low, and while when demand was high, it would scale back its operations and use of electricity.