Residents question proposed 50MW data center in Hopkinsville, Kentucky

North Campbell Land Co. plans to convert its 15MW Bitcoin mining facility in Hopkinsville, Kentucky, to support artificial intelligence (AI) and high-performance computing (HPC) workloads. The company is also proposing a separate 50MW data center elsewhere in the city.

The existing cryptocurrency mining facility has operated for approximately three years at Hopkinsville Electric System’s (HES) Holland Substation. It includes about 22 modular computing units and uses surplus capacity that was previously available at the substation.

North Campbell has not disclosed the proposed second facility’s location, footprint, construction cost, or development timeline. It also has not identified potential AI or HPC customers.

Residents raise environmental and noise concerns

During a recent public hearing, residents expressed concerns about noise, water consumption, backup generators, emissions, and possible effects on nearby homes and waterways.

Pembroke resident Sherry Byerline said she could already hear industrial machinery operating several miles from her home. She called for safeguards against persistent noise and pollution.

Hopkinsville resident Becca Hostilo asked the city to require closed-loop cooling, protect the Little River and Lake Barkley, and consider limiting the number of data centers in the area. North Campbell representatives said the proposed facility would use a closed-loop system that recirculates water.

Company representative Thomas Masiero said North Campbell had not received noise or water complaints about the existing mining operation.

The existing site also participates in a flexible-load program. Under the arrangement, its electricity consumption can be reduced or stopped when the Tennessee Valley Authority’s system is experiencing high demand.

HES general manager Jeff Hurd said revenue from the operation helps the municipally owned utility offset costs that might otherwise be passed on to its approximately 13,000 customers.

Hurd later told city council members that TVA could supply the additional power without affecting existing customers. He said the conversion and expansion would take place in phases, and that a new substation could potentially be ready within six to 12 months.

Proposed zoning rules

Hopkinsville does not currently classify data centers as a distinct land use. A working draft would define facilities using less than 75MW and occupying less than 50,000 square feet as large-scale data centers. These facilities would be subject to a 1,000-foot setback from residential, public, and quasi-public properties.

Facilities consuming at least 75MW or occupying 50,000 square feet or more would be classified as hyperscale facilities and prohibited under the draft rules. The existing cryptocurrency mining facility would likely receive legal nonconforming, or grandfathered, status.

Attorneys representing HES and North Campbell argued that the proposed setbacks were too restrictive and could effectively prevent data center development in Hopkinsville.

Community and Development Services is expected to conduct a second public hearing before forwarding its recommendation to Hopkinsville City Council. The council will have final authority over the regulations.

North Campbell’s ownership

North Campbell became a wholly owned subsidiary of Sphere 3D after Sphere 3D acquired Cathedra Bitcoin in June. Sphere 3D operates approximately 53MW across facilities in Iowa, Kentucky, and Tennessee, and reports a development pipeline of more than 100MW.