Bitcoin mining data center rejected

SMITH COUNTY — Tyler residents packed City Hall Tuesday as the city’s planning and zoning commission considered a proposed Bitcoin mining data center near downtown — and by the end of the meeting, neighbors got the decision they were hoping for. According to our news partner KETK, the commission voted 5-2 to deny a special use permit for the project proposed by Vulcan Core, which would have been built near West Erwin Street and North Ross Avenue.

For many residents who spoke against the project, the debate was less about new technology and more about protecting the character and quality of life of their neighborhood. During the meeting, opponents questioned how the facility could affect local resources and nearby residents.

Tyler homeowner Hannah Morris said she had concerns about the project’s water usage and the source of that water. “We were told that it’s a close-knit system, but water doesn’t magically appear. My question is, where is it coming from?”

Neighbors also raised concerns about potential noise from the facility, including low-frequency vibrations they said could affect surrounding residents.

Residents also questioned whether the economic benefits would outweigh the potential impacts. They said the estimated seven to 10 jobs created by the project would not justify concerns about noise, resources and added pressure on city services.

While many residents opposed the project, others spoke in favor of the data center and said the company had worked to address community concerns.

Former Tyler City Council member Bob Westbrook said the developers had provided solutions based on problems seen at other data centers. “The group that put this project together answered many of the concerns and many that they found solutions to the problems that other data centers have caused in the communities they serve in other parts of the country.”

An Oncor representative also told commissioners the project was not expected to increase electric bills for nearby customers.

With support from city staff, the Planning and Zoning Commission ultimately voted to deny the special use permit.

Currently, data centers are not subject to a specific zoning category in the City of Tyler, and the applicant may appeal the decision.