Construction of a controversial crypto mine near Cabot, Arkansas, is set to resume after a county judge lifted a cease-and-desist order issued for failing to comply with local floodplain regulations. The decision has reignited concerns among residents and officials about the project’s proximity to the nearby Little Rock Air Force Base and its potential environmental and noise impacts.
The order, initially issued on November 27 by Lonoke County Judge Doug Erwin, targeted Interstate Holdings Blockchain Arkansas, the owner of the crypto mining facility. However, Erwin lifted the order last week after determining the company was no longer in violation of the county’s floodplain ordinance.
Contentious Project Draws Scrutiny
The crypto mine has faced mounting opposition from both local leaders and residents. Earlier this month, state and city officials held a news conference at Cabot City Hall, pledging to do everything within their legal power to block the data center’s construction.
“Arkansas has 53,179 square miles, roughly. Why did they pick this facility that’s less than 5 miles away from an airbase?” State Senator Ricky Hill (R-Cabot) said at the December 4 press conference. “This is a national security concern.”
Hill’s concerns center on the proposed site’s proximity to Little Rock Air Force Base, located just 5 to 6 miles away. Hill, however, could not be reached for further comment on Monday.
Interstate Holdings Defends Plans
Steve Landers Jr., president of Interstate Holdings Blockchain Arkansas, rejected accusations that the crypto mine posed any security risks.
“I’ve been a businessman in this state for the majority of my life, and for anybody to suggest that we would do something nefarious or have ill intentions towards anything is, I mean, is just insulting honestly,” Landers said Monday.
Landers also dismissed concerns about hacking or interference with the Air Force base.
“The problem I have is being accused of doing something like building next to an Air Force base so we can hack the Air Force base. That’s dumb,” Landers stated. “My computers would be linked up to an in-house server, not unlike a bank.”
Noise and Local Regulations Under Review
The crypto mine’s noise levels remain another point of contention. Crypto mining operations often involve large banks of computers that require industrial fans for cooling, creating a persistent and loud buzzing sound that can impact nearby communities.
Landers said his company conducted a noise study and assured the operation would be limited to 55 decibels at the property’s fence line. Dustin Curtis, Interstate Holdings’ vice president, added that the company notified city and county officials about the project in June and residents in November.
Cabot Mayor Ken Kincade remains cautious, noting that he is still reviewing the noise study provided by Interstate Holdings. “We’re united in our drive to legally do anything within our power to remove this from our community,” Kincade said at the December 4 press conference.
The cease-and-desist order initially stemmed from a violation of a 2023 county ordinance, which requires crypto mines to notify residents within a half-mile radius before commencing operations. While Interstate Holdings faced scrutiny over notification procedures, Judge Erwin’s order only cited violations of floodplain regulations, which the company has since addressed.
State Law and Ongoing Legal Battles
Crypto mining facilities have sparked similar disputes across Arkansas. During the 2023 legislative session, the General Assembly passed a law restricting local governments from targeting crypto mines through ordinances. However, following complaints about noise pollution and other disruptions, the law was amended to allow local regulations and oversight by the Arkansas Oil and Gas Commission. The revised law also prevents foreign ownership of crypto mines.
Legal challenges persist. Last week, a federal judge issued a preliminary injunction preventing the state from enforcing aspects of the updated law after an Arkansas County crypto mine owner sued the state.
A Community Divided
As construction resumes near Cabot, the debate over the crypto mine highlights growing tensions between economic development and community concerns. Landers insists the project complies with all regulations and urged critics to consider the company’s efforts to address noise and security worries.
“I don’t have a problem with the residents issuing a concern, or the politicians issuing a concern. I get it. I understand,” Landers said.
For now, the crypto mine’s future remains closely watched, as officials and residents alike evaluate its broader impact on the community and the nearby Air Force base.
