North Campbell Land Co. is looking to convert its 15MW Bitcoin mining facility in Hopkinsville, Kentucky, to AI and high-performance computing (HPC) workloads, while developing a second 50MW data center elsewhere in the city.

The existing cryptomine has operated for around three years at Hopkinsville Electric System’s (HES) Holland Substation. It comprises approximately 22 modular computing units and uses surplus capacity previously available at the substation.

The location, footprint, construction cost, and development schedule for the second facility have not been disclosed. North Campbell has also not announced any prospective AI or HPC customers as of yet.

Residents speaking at a recent hearing raised concerns about noise, water consumption, backup generators, emissions, and the potential effect on nearby homes and waterways.

Pembroke resident Sherry Byerline said she could already hear industrial machinery operating several miles from her home and called for protections against continuous 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 allowed in the area. North Campbell’s representatives said the proposed facility would use a closed-loop system that recirculates water.

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

The site also participates in a flexible-load program, allowing its electricity consumption to be reduced or halted 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 would otherwise fall on its approximately 13,000 customers.

Hurd subsequently told city council members that TVA could provide the additional power without affecting existing customers. He said the proposed conversion and expansion would be completed in phases, with the new substation potentially ready within six to 12 months.

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

Facilities consuming at least 75MW or occupying 50,000 sq ft or more would be classified as hyperscale and prohibited. The existing cryptomine would likely receive legal nonconforming, or grandfathered, status.

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

Community and Development Services is expected to hold a second public hearing before sending its recommendation to Hopkinsville City Council, which has final authority over the regulations.

North Campbell became a wholly owned subsidiary of Sphere 3D following its acquisition of Cathedra Bitcoin in June. Sphere 3D operates approximately 53MW across sites in Iowa, Kentucky, and Tennessee and claims a development pipeline exceeding 100MW.