Cascade Faces Debate Over Proposed Bitcoin Mining Project

My hometown in Cascade, Iowa could soon feature a new type of industrial operation. The Cedar Falls-based company Simple Mining plans to build about 40 modular containers near the Cascade Industrial Park, known as the Oak Hill neighborhood. Each container will house servers that work around the clock to mine Bitcoin. The containers are about 160 square feet each and will sit on concrete pads. Together they represent a significant amount of computing power.

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The project is expected to create around eight local jobs. The Cascade Economic Development Corporation (CEDC) sees this as a way to bring investment to the town and diversify the local economy. While the facility will not be a traditional data center, it still adds industrial activity, with hopes to attract similar projects in the future. The question with these investments is always, what will it cost the residents? Unfortunately, it's a lot of unknowns, based on estimates, until it's actually operational.

Simple Mining has grown quickly since it started in 2021. Its operations in Iowa now run on over 75 megawatts of power, enough electricity to power roughly 50,000 to 60,000 average U.S. homes for a year. The company says it uses clean energy, sourcing up to 65% of its electricity from wind at its Iowa sites. The self-cooled containers are also designed to reduce water use and help keep energy demands predictable. Our Midwest climate also play a role in the energy consumption department. Simple Mining has said it will share its maximum electricity use with the CEDC before buying the land. Officials are also requiring that noise from the facility stay no louder than a normal conversation to protect nearby neighborhoods.

Looking at similar operations across Iowa, bitcoin mining is energy-intensive, but the Cascade site is relatively small. Research shows large bitcoin mines can increase demand on local power grids and, depending on energy sources, add emissions. At the same time, continuous electricity use can help utilities plan for steady demand and invest in infrastructure. Unfortunately, that usually means an increase in some form of taxes or utilities increase to pay for upgraded infrastructure and demand, and that comes from the residents.

After running some simple calculations, it isn't a far reach to say that these 40 containers could double our towns electricity use. While exact figures for the Cascade site have not been publicly released, a reasonable estimate can be made based on industry standards and Simple Mining’s overall scale.

The company reports operating more than 75 megawatts of power across its facilities, and crypto mining containers like the ones planned for Cascade typically use between 250 kilowatts and 1 megawatt each. Based on that range, a single container could use enough electricity to power roughly 150 to 800 homes. With about 40 containers planned, the full Cascade operation could require somewhere between 10 and 40 megawatts of power, which is comparable to the electricity use of a small town, or roughly 6,000 to 30,000 homes: that's quite the range.

Now, these numbers are estimates, but they help illustrate the scale of energy involved and why electricity use is one of the main concerns being discussed as the project moves forward. For Cascade residents, this project offers both benefits and potential concerns, based on a report from KCRG. Benefits include jobs, investment, and economic diversification. Concerns include electricity use, noise, and effects on wildlife. Planned public meetings hosted by the CEDC and city officials will give residents a chance to review details and ask questions before construction begins.

This development was discussed at the recent city council meeting in Cascade; stating, "they are currently waiting for the city attorney to provide a list of questions regarding the Simple Mining transaction."

The proposed bitcoin mining project represents a new chapter for our town. It is a modern industrial venture that will bring both opportunities and challenges. The town’s involvement through the CEDC is meant to ensure the project remains transparent, safe, and beneficial for the community.

In all honesty, the company (Simple Mining) makes it seem great and above the books, with state-of-the-art systems, and a transparency that few see in the tech sector. That being said, I simply don't have enough information, other than what I have found provided here, to make a decision on if the benefits will outweigh the downsides. Only time will tell if it's a step in the right direction, or a future regret for our small community.