FAULKNER COUNTY, Ark. — In the small Faulkner County community of Bono, not far from Greenbrier, a crypto-mining facility has created some real commotion.
Soon after the facility was built, residents began to complain about health concerns due to the excruciatingly loud noises coming from the facility.
That led to the passage of Faulkner County Ordinance 23-20 in July of last year, which was a noise ordinance regarding data centers like the one in Bono.
Since then, sound walls have been put up at the facility, making it quieter. Although a Faulkner County official explained that a recent fire at the facility has the current noise level at 80% of what it otherwise would be.
According to Faulkner County Quorum Court member John Allison, the noise ordinance didn’t completely fix the problem, but it helped and was a welcome development for residents.
"We in Faulkner County have probably the biggest data center operating in the state,” said Allison, who is also Justice of the Peace for District 3. “In Acxiom down there in Faulkner County in Conway. We know data centers can operate responsibly. This one set up and chose not to."
However, the company that operates the mine, Newrays One LLC, disputes that claim and has been in court fighting against it.
In a federal lawsuit filed on September 26 against multiple Faulkner County officials, attorneys for Newrays claimed that the ordinance was targeted at Newrays in part because people believed the company was Chinese-owned.
“Consideration of Ordinance 23-20 took place amid widespread anti-Chinese sentiment in Faulkner County, Arkansas,” the lawsuit read in part.
The lawsuit also included a mention of a group called “Secure Arkansas” distributing anti-Chinese material to individual Quorum Court members in the weeks leading up to the consideration of the ordinance.
Allison did acknowledge that the ordinance was created with Newrays in mind, but said it wasn’t for any reason other than the noise.
“If the Pope would have built this thing, or if the Southern Baptist Convention would have built this thing, and I'm Southern Baptist. I would have done the same thing on the Quorum Court that I did with this one," he explained.
The lawsuit also claims that the noise ordinance was purposefully passed quickly in order to take effect before Arkansas Act 851 did, which the Arkansas General Assembly passed in 2023 to limit the ability of local governments to regulate crypto-mines.
“On July 19, 2023, the Faulkner County Quorum Court enacted Ordinance 23-20, which contained an "emergency clause" intended so that its provisions would take immediate effect before the effective date of Act 851,” the lawsuit reads.
Ordinance 23-20 does include an “emergency clause” which does not explicitly mention Act 851.
It reads, “The Quorum Court finds that the immediate implementation of this ordinance is necessary for the preservation of the public’s peace, health, safety, welfare, and property, an emergency is hereby declared to exist and that this Ordinance is to be in effect immediately after its adoption.”
Allison said in his view, the county simply did what was right by the people living across the tree line from the facility.
"They were operating at a noise level that nobody should have to live next door to,” Allison said. "This house was here before they got here. They set up, and they evidently had no problem with torturing this family."
The family that Allison was referring to is that of Gladys Anderson, who lives beside the facility and also filed a suit against Newrays One LLC in 2023.
A hearing on the Newrays suit filed on September 26 was scheduled for Friday, October 4 where one of the three lawyers listed on behalf of Newrays One LLC in the lawsuit, Alexander T. Jones, explained that he could not comment due to the ongoing nature of the case.
Maree Coats, who sponsored Ordinance 23-20 as part of the Faulkner County Quorum Court, said the same, as she was also participating in the hearing.
The other two lawyers representing Newrays One LLC, as well as the four Faulkner County officials named in the suit (Faulkner County Judge Allen Dodson, Faulkner County Sheriff Tim Ryals, Faulkner County Prosecuting Attorney Carol Crews, and Faulkner County Attorney Phil Murphy) could not be reached for comment.
To see the full lawsuit, please click here.