As data and cryptocurrency mining centers continue to pop up across the country, the Effingham Plan Commission is discussing new regulations that address concerns about the large amount of energy these centers use as well as the noise they can produce.
Effingham City Planner Greg Koester initially brought the matter to the city’s attention during a Jan. 9 Effingham City Council meeting, and the Plan Commission discussed the matter further during its Tuesday meeting.
“Although data center and cryptocurrency mining are two different things, they are closely related,” Koester told panelists. “We have had inquiries about setting up data centers.”
According to Koester, the city does not have any language in its zoning ordinance that expressly allows data centers and cryptocurrency mining.
“In my opinion, there’s nothing really close to what these things are,” Koester said.
Explaining what data centers are used for, Koester said they often require a large amount of energy to run and cool computers and servers.
“They process what you buy, what you look at, and then the next thing you know, you’re getting ads or notifications that this product is on sale now,” Koester said.
In addition, he said some centers use a large amount of water to cool their systems and fans, which can be loud.
“Cryptocurrency mining can be on a large scale; “It could be on a small scale,” Koester said.
For these reasons, Tracy Wellenborg, city attorney for Quester and Effingham, recommends creating a new special use permit for data and cryptocurrency mining centers to prevent any overuse of local power grids and other potential nuisances.
Effingham Plan Commission member Ken Waltman asked Koester and Willenburg how much the city would be able to control the development of data mining and cryptocurrency centers, and Effingham Plan Commission Chairman Brian Hayes asked where such centers would be allowed within the city.
“Private use allows for better control of the precise location,” Willenborg said. “It is not allowed carte blanche in any area.”
Koester noted that data centers and cryptocurrencies sometimes use solar and wind energy, something the city may have to consider when drafting any new regulations.
“It could be connected to a solar system or a wind farm,” Koester said.
He also said the city could either process data centers and cryptocurrency mining centers in the same special use permit or create two separate special use permits for them.
“I can see it going both ways,” Koester said.
The committee did not take any action in this regard on Tuesday.
The committee also voted during the meeting to recommend approval of amendments to the city’s zoning code regarding duplexes and triplexes.
“This has been achieved through some inquiries and we hope to create more housing units,” Koester said. “However, we still want to protect our existing neighborhoods, so hopefully there will be a good balance there.”
According to Koester, the amendments “clean up the language” in the city’s zoning code and include new requirements for lot sizes, yard setbacks and building heights.
“If you’re going to put a single family on an R-3B lot, you have to have 6,000 square feet,” Koester said. “If you’re going to do a two-family, you have to have 6,000 square feet. If you go up to a triplex, you have to have 8,000 square feet.”
These amendments are intended to address the construction of new housing units rather than converting single-family homes into duplexes or triplexes, which both Koester and Willenborg said is “unlikely” to happen, Koester said.
A resident contacted Koester before the meeting to express his concerns about the transfers.
“This citizen and I have discussed a lot of things back and forth, and we may see other things in the future in terms of single-family home conversions to multi-residential units,” Koester said.
He told commissioners that changes to the city’s zoning code or municipal code may be necessary in the future to address the potential problem, but Foltman said he believes some of the city council’s recommended amendments will help deter these types of conversions.
“I think it would be a mistake to let someone go in there and create four units in that type of house, so the square footage of the lot size is very helpful,” Waltman said.
The Effingham City Council is expected to discuss the proposed amendments during its next meeting scheduled for January 16.
Meanwhile, the commission recommended approval of a request from Mark E. Mayhood and Diane Y. Mayhood to rezone a property at 3 Rollin Hills Boulevard in Effingham, which is located near Daylight Donuts, from an R-2 Single-Family Residence District to a shopping district In District B-1.
“It was improved with a single-family home that was torn down,” Koester said. “The city recently sold the property in question to the Mayhood Trust.”
Koester said the rezoning of the property is consistent with the city’s comprehensive plan and the commercial direction of development in the area.
Mark Mahood went before the commission Tuesday to speak in favor of the rezoning request.
“When I bought it from the city, it was already zoned commercial,” Mihhood said. “I don’t have any plans for that right now.”
The only structure currently on the property is a snow cone platform which is not permanent.
In other matters, the commission voted to recommend approval of preliminary and final plats for the fifth addition to the Historic Hills subdivision and the first addition to the Rollin Hills subdivision.
The Commission also voted to grant a continuance for a public hearing on a petition to rezone two parcels of land located on South Banker Street, west of Miracle Ave., from the Nonurban District to the M-1 Light Industrial District and B-2 General Business District and a public hearing on the petition for A special use permit for a solar energy system with a solar collector surface area greater than 100,000 square feet.