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The Stuttgart City Council unanimously voted to regulate data centers that could move into the city in the future. All aldermen voted for the measure except Cache Bledsaw, who did not attend the special called meeting on Friday.

The council adopted Ordinance 2012 which puts restrictions on noise levels crypto-mining data centers can create.

Code Enforcement Officer Eric Mahfouz said these centers are quite loud, as high as 85 decibels, which would create a nuisance for neighbors.

He said these centers are just boxes that house servers and create noise and heat.

Mahfouz said Act 851 of 2023 will go into effect on Aug. 1, and once the law goes into effect, there will be little cities and counties can do to regulate data centers used to mine for cryptocurrency. The new Arkansas law limits the kinds of regulations local governments can implement on digital asset mining companies by prohibiting discrimination against them and requiring any regulations to treat them the same as data centers.

There are other cities and counties all over the state having to act quickly because once (Act 851) goes into effect, regulations cannot be passed to regulate these data centers, Mahfouz explained.

Since the city passed Ordinance 2012, which spells out what the noise levels must be as well as the consequences for non-compliance with the ordinance.

City Attorney Robert Dittrich said the citys ordinance is the same ordinance passed by Arkansas County Quorum Court in its July meeting.

The ordinance was passed with an emergency clause, so it went into effect immediately, and since it was in place before Aug. 1, 2023, it is enforceable even with Act 851 going into effect.

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Council votes to regulate cryptocurrency mining within city limits - Stuttgart Daily Leader