Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Bitzero to buy old North Dakota missile site for data center

Gov. Doug Burgum says a crypto mining company is planning to redevelop a northeastern North Dakota anti-ballistic missile site abandoned in the 1970s into data center that may be used for the mining of bitcoin and other digital currencies

Via AP news wire
Monday 25 July 2022 18:05 EDT
North Dakota Data Center
North Dakota Data Center (Copyright 2021 The Associated Press. All rights reserved)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A crypto mining company plans to redevelop a northeastern North Dakota anti-ballistic missile site abandoned in the 1970s into data center that may be used for the mining of bitcoin and other digital currencies, Gov. Doug Burgum announced Monday.

Bitzero Blockchain Inc., which is backed by strategic investor and “Shark Tank” star Kevin O’Leary, announced last month that it planned to make North Dakota its headquarters for North American operations. The company said within three years it intends to build 200 megawatts of data centers in the state and is involved in a joint venture to become an assembly and distribution hub for graphene battery technology.

Long considered a white elephant and waste of taxpayers’ money, the site at Nekoma grew out of a 1972 treaty between the United States and the Soviet Union.

The $6 billion Stanley R. Mickelsen Safeguard Complex once housed a radar system within a concrete pyramid, with 7-foot-thick, steel-reinforced walls. It was deactivated in 1976 after only a few months of operation. Nekoma’s population reached several hundred, compared with about 30 today, and surrounding towns benefited from an influx of highly paid missile experts and support personnel.

The Cavalier County Job Development Authority has owned the site since 2017. Spokeswoman Carol Goodman said the facility would be sold to the company for $250,000.

Burgum said waste heat captured from the data center’s servers will be used to heat an on-site greenhouse, and the company also is planning an interpretive center, representing a total investment estimated by Bitzero at $500 million.

“This important piece of history will be restored and become a beacon for North Dakota innovation to the rest of the world,” Burgum said.

Bitzero has signed leases in both Bismarck and Fargo for administrative operations. The Nekoma site will be their primary data center site in North Dakota, Burgum spokesman Mike Nowatzki said.

Separately, Burgum in January announced construction of a $1.9 billion data center located near the biggest city in the state’s oil-production region in northwest North Dakota.

The second-term Republican governor hailed the Atlas Power Data Center to be built by Missoula, Montana-based FX Solutions Inc. as one of the biggest such centers in the world, and one that will help diversify the economy in Williston-area that has suffered oil boom-bust cycles for decades.

Burgum, a wealthy former Microsoft executive, called data centers an “incredible forward- looking industry not dependent on the price of oil.”

Uses for data centers include the mining of bitcoin and other digital currencies. Cryptocurrency mining involves supercomputers to solve complex calculations needed to provide security for transactions in the digital currency.

The process requires vast amounts of power and generates much heat. Burgum has said North Dakota is an ideal place for data centers because it has a reliable and affordable power supply, and a climate that lowers cooling costs.

Burgum spokesman Nowatzki said no public money has been earmarked for any of the projects, though they are expected to qualify for tax credits already given to agriculture, energy and other industries.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in