Boxminer Faces Local Backlash Over Proposed 20MW Crypto Data Center in La Pine, Oregon
May 25, 2026
Boxminer Faces Local Backlash Over Proposed 20MW Crypto Data Center in La Pine, Oregon
Bitcoin mining firm Boxminer is pushing forward with plans to build a 20MW data center in the small city of La Pine, Oregon, but the proposal has ignited strong opposition from local residents concerned about environmental and community impacts. The project, presented to the La Pine City Council in March by company representative Jeff Keller, would be located on Reed Road in the city’s industrial area and would utilize a closed-loop cooling system designed to neither consume nor discharge water. Despite these design features, hundreds of residents packed La Pine City Hall to voice their objections, according to reports from Central Oregon Daily, reflecting growing tensions between the crypto industry and rural communities.
During the March 25 city council meeting, Keller outlined the scope of the 20MW facility, which would rely on power from Midstate Electric. He noted that the utility had assured Boxminer it could supply the required capacity, though council minutes indicate that Midstate may need to consult with the Bonneville Power Administration and the federal government. The discussion also touched on potential future expansion to 100MW, though Keller acknowledged uncertainty over whether Midstate could support such a load. The city council voted unanimously that evening to move forward with the purchase and sale process for the industrial site, but officials stressed that the vote was non-binding and did not constitute approval for the land sale or the project itself.
The proposed site is owned by Deschutes County, meaning the county must also sign off on the project before any developer can proceed. Even after that, Boxminer would need to undergo land-use review with the city and building review with the county before construction could begin. During the meeting, La Pine City Manager Geoff Wullschlager said staff had reviewed potential financial and social impacts, including monthly power payments to Midstate Electric, possible franchise fee revenue, potential full-time jobs, a La Pine High School internship program, and property tax revenue. However, he also noted unresolved questions around traffic, environmental noise, water and sewer resources, and whether the final use would remain consistent with the proposal.
Boxminer describes itself as a Bitcoin mining and powered-land development company that mines cryptocurrency, develops sites, and sells mining containers and machines. The company says it has experience in powered land development across multiple U.S. states, including Oregon, Washington, Texas, Ohio, Pennsylvania, Virginia, Georgia, Missouri, and the Carolinas, as well as Iceland. The La Pine project reflects a broader trend of crypto mining firms seeking low-cost energy and rural locations, but it also highlights the regulatory and community hurdles that such proposals increasingly face. As local governments weigh economic benefits against environmental and social concerns, the outcome in La Pine could serve as a bellwether for similar projects across the country.
Source: datacenterdynamics
