Tyler, Texas Rejects Bitcoin Miner Data Center Permit

en.Wedoany.com Reported - The Planning and Zoning Commission of Tyler, Texas, voted 5-2 to deny a special use permit that would have allowed Bitcoin miner Vulcan Core LLC to build a data center on a local site.

The permit was for a 1.92-acre property at 1101 and 1105 W. Erwin Street, where an 8,090-square-foot (750-square-meter) data center was planned. Under the permit conditions, the data center building would use no more than 12 megawatts of power capacity, with any additional usage requiring further approval.

The proposal faced strong opposition from local residents, with concerns primarily focused on potential water consumption, noise, and proximity to nearby residential areas. However, the permit conditions explicitly stated that the data center would use a "closed-loop system" and "outdoor dry cooling units," and would not be equipped with diesel generators or on-site combustion equipment.

Tyler, located in eastern Texas about 100 miles (160 kilometers) west of Dallas, is not a major data center hub. The city's downtown area hosts a 12-megawatt facility operated by Barrio Energy, which was repurchased in August 2024.