Arkansas Code of 1987 (2023) › Title 14 - LOCAL GOVERNMENT (§§ 14-1-101 — 14-387-706) › Subtitle 1 - GENERAL PROVISIONS (§§ 14-1-101 — 14-2-308) › Chapter 1 - GENERAL PROVISIONS (§§ 14-1-101 — 14-1-606) › Subchapter 6 - ARKANSAS DATA CENTERS ACT OF 2023 (§§ 14-1-601 — 14-1-606) › Section 14-1-604 - Digital asset mining

(a)
A digital asset mining business may operate in this state if the digital asset mining business complies with:
(1)
Any ordinance;
(2)
Any rule or rate for utility service provided by or on behalf of a public entity; and
(3)
State and federal law.
(b)
A digital asset miner shall:
(1)
Pay applicable taxes and government fees in acceptable forms of currency; and
(2)
Operate in a manner that causes no stress on an electric public utility's generation capabilities or transmission network.
(3)
Apply noise-reduction techniques, including without limitation:
(A)
Using liquid cooling or submerged cooling;
(B)
(i)
Fully enclosing the envelope.
(ii)
(a)
As used in subdivision (b)(3)(B)(i) of this section, "fully enclosing the envelope" means enfolding the envelope where noise from the operation of a digital asset mining business is directly produced around all sides, including above and below the equipment producing the noise, with material that is reasonably calculated by industry standards to reduce noise emissions to a level that is acceptable to a reasonable person under similar circumstances.
(b)
Except as provided in subdivision (b)(3)(B)(ii)(c) of this section, "fully enclosing the envelope" does not include utilizing a passively cooled premanufactured container without additionally enclosing the system in a complete envelope.
(c)
A digital asset mining business may use a passively cooled premanufactured container without additionally enclosing the system in a complete envelope if the digital asset mining business locates or relocates under subdivision (b)(3)(C) of this section; or
(C)
Upon approval by the local government, locating or relocating to:
(i)
A minimum of two thousand feet (2,000') from the nearest residential or commercial use structure; or
(ii)
An area zoned for industrial use or an otherwise approved use.
(4)
(A)
A person who owns land within two thousand feet (2,000') of the nearest property line of a digital asset mining business may commence an action in a circuit court with proper jurisdiction over the digital asset mining business to enforce the noise reduction techniques required under subdivision (b)(3) of this section.
(B)
A person who prevails in an action commenced under subdivision (b)(4)(A) of this section may be awarded reasonable attorney's fees and costs.
(c)
An individual may utilize a node in this state for the purpose of operating home digital asset mining at the individual's residence according to applicable utility rules and rates.
(d)
A person may have a digital asset mining business in an area that is zoned for industrial use that has not been designated by the local government for other uses.
(e)
A person that is engaged in home digital asset mining or that has a digital asset mining business shall not be considered a money transmitter under the Uniform Money Services Act, §
23-55-101
et seq.
(f)
A local government shall not pass an ordinance that:
(1)
Prohibits an individual from engaging in home digital asset mining; or
(2)
Requires an individual to obtain approval from a local government before engaging in home digital asset mining.
Amended by Act 2024, No. 173,§ 4, eff. 5/3/2024.
Amended by Act 2024, No. 173,§ 3, eff. 5/3/2024.
Amended by Act 2024, No. 173,§ 2, eff. 5/3/2024.
Added by Act 2023, No. 851,§ 1, eff. 8/1/2023.