New York officials weigh crypto freeze as mayor says one site could swallow half the city's power

A town in New York is once again considering putting the brakes on crypto expansion, a sign that even communities with access to relatively cheap electricity are taking a closer look at how energy-intensive industries fit into everyday local life. 

Plattsburgh city officials are considering issuing a temporary stop on new crypto ventures while they work through zoning revisions meant to keep future crypto or data center projects from taking up too much of the city's energy allotment from the state, WCAX reported.

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Plattsburgh Mayor Wendell Hughes says the proposed moratorium would give the city time to adopt updated zoning rules before another major crypto or data center project moves forward, according to WCAX. He said Plattsburgh's full state power allotment is 105 megawatts, and that a single high-demand facility could use 50 megawatts by itself.

Hughes said the proposal would first go to the county and then come back to the Common Council for a vote. He also said Plattsburgh has long drawn crypto miners because of its low-cost electricity, while maintaining that these high-energy facilities do not increase utility rates for residents.

This would not be the city's first move of that kind. In 2018, Plattsburgh became the first U.S. city to halt crypto mining while regulators worked to catch up with the technology, Weforum reported.