A Bitcoin mining data center in El Reno, Oklahoma, has been condemned after a fault in a private water line resulted in the loss of around 3.8 million gallons of water and caused disruption for residents.. The leak was traced to a privately owned fire hydrant at a facility operated by Athlon Blockchain Technology Corporation (Athlon BT).
The resulting drop in water pressure forced the city to temporarily suspend water service in some areas, while local schools were closed for two days.. El Reno, Oklahoma – katsrcool/Wikimedia Commons. Following the leak, the city condemned the property and issued a public nuisance abatement notice.
Athlon BT will not be permitted to restart operations until the outstanding code violations have been addressed.. City officials said the site had been operating without a final certificate of occupancy and was subject to a stop-work order issued in 2023.. According to Canadian County property records cited by local public radio station KOSU, the property is owned by Athlon BT, which describes itself as a developer of mobile data centers for AI and Bitcoin mining..
El Reno issued a building permit for the property in 2021. However, the city ordered work to stop in June 2023 after inspectors identified fire and life-safety code violations. The site was subsequently found to have dangerous structures, drainage problems, expired building and electrical permits, and no final certificate of occupancy, according to KOCO..
Despite the order, city officials believe Athlon BT continued developing the facility and began operating the site.. “At this time, it is believed, although not yet confirmed, that despite lacking any certificate of occupancy, the property owner continued to construct the facility and began operations,” interim city manager Ken Brown said..
A hearing concerning the property is scheduled for September 14. No criminal charges had been filed at the time of writing.. Brown acknowledged that the city had failed to follow up on the stop-work order, reportedly blaming staff turnover and poor communication between municipal departments..
El Reno mayor Steve Jensen said Athlon BT would be billed for the lost water, along with overtime, equipment, and other costs incurred while locating and stopping the leak. The city has said none of the costs will be passed on to residents. Athlon BT has not responded to requests for comment from local media..
While the leak occurred at a Bitcoin mining facility, officials have not said it was caused by the site’s cooling systems or normal water consumption. The failure instead originated from a private water line connected to a fire hydrant on the property.. Oklahoma hosts a growing number of Bitcoin mining and data center operations.
LM Funding America operates a 15MW cryptomine in Calumet, around 20 miles (32km) west of El Reno, which it is looking to partially repurpose for AI and high-performance computing workloads.. The state recently introduced legislation intended to shield ratepayers from infrastructure costs associated with data centers and cryptocurrency mining facilities adding 75MW or more of demand..
Cryptomines are also facing scrutiny elsewhere in the US over their potential impact on local infrastructure. In July, authorities in Tyler, Texas, rejected a proposed 12MW Bitcoin mining data center following local concerns about water use, noise, and the facility’s proximity to nearby homes..
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