Madison, S.D. – In a move aimed at boosting local revenue and expanding high‑tech jobs, the Madison City Commission approved a land lease and electric service agreements for Simple Mining, an Iowa‑based digital currency mining company. The approvals clear the way for the company to apply for a building permit and begin construction of a 10‑megawatt facility, expected to be operational in the first quarter of 2027.
City officials stress community benefits
City Administrator Jameson Berreth told residents that the project will not increase their electric bills. “We’re passing along every cost that we have to the customer, Simple Mining. They’re buying electricity from us and paying a rate for that, so we have no expenses that aren’t ultimately paid by them, and we’re getting new revenue,” Berreth explained.
Berreth added that the agreement includes safeguards to ensure the facility remains a good neighbor, such as noise‑level limits, the ability for the city to interrupt power if needed, and a self‑sufficient water system that will not tap into municipal water supplies.
Simple Mining outlines its approach
Simple Mining’s Director of Energy Infrastructure and Site Development emphasized the company’s commitment to the community. “We work really hard with the communities that we’re in; we want to be a part of the communities where we build and truly be a benefit to them through the demand response programs,” the director said.
The facility will house specialized computers that solve complex calculations to verify transactions on the Bitcoin network, generating revenue for the company and, indirectly, for Madison through the lease and utility agreements.
Technical details and environmental considerations
To meet the city’s water‑use requirements, Simple Mining will employ a dry‑cooler technology that is filled once and only needs occasional top‑offs throughout the year. “We will be using a dry‑cooler technology that we fill once and then just have to top off a little bit throughout the year by bringing in water,” said company representative Hein.
The project also aligns with Heartland Energy’s need to find customers for a new electricity supply line. By becoming a customer, Simple Mining helps the utility recoup its transmission‑line upgrade costs, supporting regional infrastructure development.
Economic impact and timeline
Local leaders anticipate that the facility will generate new tax revenue and create skilled employment opportunities in Madison. While the exact number of jobs has not been disclosed, the presence of a high‑tech operation is expected to attract ancillary businesses and boost the local economy.
Construction timing will depend on weather conditions, but Simple Mining aims to have the facility up and running in the first quarter of 2027, pending the issuance of a building permit.
Community response
Residents have expressed cautious optimism, noting the city’s assurances that the project will not affect household electricity costs. The commission’s decision reflects a broader trend of smaller municipalities partnering with emerging technology firms to diversify their economic base.
Madison’s proactive approach demonstrates how local governments can leverage innovative industries while safeguarding community interests.
Original reporting: Dakota News Now KSFY Sioux Falls (local) — read the source article.
