North Campbell Land Co. is seeking to transform its existing Bitcoin mining operation in Hopkinsville, Kentucky, into an AI and high-performance computing facility while simultaneously developing a new 50 MW data center elsewhere in the city, drawing concerns from local residents over noise, water use, and environmental impact.

From Cryptomining to AI and HPC

North Campbell Land Co. has operated a 15 MW Bitcoin mining facility at Hopkinsville Electric System's Holland Substation for approximately three years.

The site comprises roughly 22 modular computing units and currently uses surplus capacity that was previously available at the substation.

The company intends to convert that operation to AI and HPC workloads while building a second, larger 50MW data center at a separate location within the city.

The location, footprint, construction cost, and development timeline for the second facility have not been disclosed.

North Campbell has also not announced any prospective AI or HPC customers. Company representative Thomas Masiero stated that the existing mining operation has not generated any noise or water complaints to date.

The existing facility participates in a flexible-load program that allows its electricity consumption to be reduced or halted when the Tennessee Valley Authority's system is under high demand.

Resident Concerns at Public Hearing

Residents speaking at a recent public hearing raised a range of concerns about the proposed development. Issues cited included noise, water consumption, backup generator use, emissions, and the potential effect on nearby homes and waterways.

Pembroke resident Sherry Byerline said she could already hear industrial machinery operating from several miles away and called for protections against continuous noise and pollution.

Hopkinsville resident Becca Hostilo asked the city to require closed-loop cooling systems, protect the Little River and Lake Barkley, and consider limiting the total number of data centers permitted in the area.

In response, North Campbell's representatives said the proposed facility would use a closed-loop system that recirculates water rather than drawing continuously from external water sources.

Utility Says Expansion Won't Harm Existing Customers

Hopkinsville Electric System general manager Jeff Hurd told city council members that the Tennessee Valley Authority could supply the additional power required by the proposed expansion without affecting the utility's approximately 13,000 existing customers.

HES is a municipally owned utility, and Hurd noted that revenue generated by the current mining operation helps offset costs that would otherwise be passed on to those customers.

Hurd also indicated the proposed conversion and expansion would be completed in phases, with a new substation potentially ready within a window of six to twelve months.

Attorneys representing both HES and North Campbell argued during the hearing that proposed setback requirements under consideration by city planners were too restrictive and could effectively prevent data center development from taking place within Hopkinsville.

City Weighing New Land Use Classifications

Hopkinsville does not currently classify data centers as a distinct land use category.

A working draft of new regulations would divide facilities into two tiers based on size and power consumption.

Facilities consuming less than 75 megawatts and occupying less than 50,000 square feet would be classified as large-scale data centers and subject to a 1,000-foot setback requirement from residential, public, and quasi-public properties.

Facilities consuming at least 75 megawatts or occupying 50,000 square feet or more would be classified as hyperscale and prohibited outright under the draft language.

The existing cryptomining facility would likely be granted legal nonconforming, or grandfathered, status under any new rules.

Community and Development Services is expected to hold a second public hearing before forwarding a recommendation to Hopkinsville City Council, which retains final authority over land use regulations.

Corporate Background: Sphere 3D and North Campbell

North Campbell Land Co. became a wholly owned subsidiary of Sphere 3D following Sphere 3D's acquisition of Cathedra Bitcoin in June.

Sphere 3D currently operates approximately 53 megawatts of capacity across sites in Iowa, Kentucky, and Tennessee and claims a development pipeline exceeding 100 megawatts.

The Hopkinsville proposal represents part of a broader industry trend of repurposing Bitcoin mining infrastructure for AI and high-performance computing applications, as demand for that type of compute capacity has grown significantly.

However, the company has yet to secure customer commitments for the converted or expanded operations, and the regulatory framework that will govern any new development in Hopkinsville remains under active review by city officials.