We Hear Your Concerns About Cryptocurrency Mining

April 16, 2026

There is a lot of information circulating about cryptocurrency mining and data centers in the community. We want you to hear from CFU directly.

CFU shares the community’s concern about future cryptocurrency mining or data center growth.

We are planning to convey this concern at future public meetings, including the April 22 Planning and Zoning meeting. We urge the City to move cautiously and fully assess the impacts of large-scale cryptocurrency mining and data centers before moving forward.

There is no “partnership” between CFU and Simple Mining, or any other customer. We are disappointed that Simple Mining has suggested otherwise because it’s not accurate. Simple Mining is not getting any preferential treatment from CFU.

Over the past few years, two cryptocurrency mining companies have connected in Cedar Falls. Their demand has grown over time. These customers pay for their own infrastructure and energy costs. They have not raised our energy costs. There is no financial risk to CFU or the community if they shut down or leave.

All cryptocurrency mining customers are required to be interruptible. During periods of extreme weather or high demand, they must power down. This helps maintain reliability and control costs for other customers.

Cedar Falls Utilities is a public utility. Our focus is providing reliable, affordable service to the community, not maximizing profits. Revenue is put into improving and maintaining equipment and local utility systems.

We are listening and will continue to carefully evaluate what best serves our community’s needs. We welcome your input. Comments left here will be delivered to CFU’s General Manager and Board of Trustees.

Community Questions

We currently have two cryptocurrency mining customers connected in Cedar Falls, and we understand that residents have questions about how these operations affect the community. Below are answers to some of the most common questions we are hearing from customers:

Does CFU currently have cryptocurrency mining customers?

Yes. Over the past few years, two cryptocurrency mining companies have connected in Cedar Falls. Their demand started very small and has grown over time, currently totaling around 45 MW in demand. These customers pay up front for their own infrastructure, and they pay for the energy costs. They have not raised energy costs in our community and there is no financial risk to CFU or the community if they shut down or leave.

Are the crypto mining customers on CFU property?

Yes. Cedar Falls Utilities leases unused bare land near existing electric infrastructure to cryptocurrency mining customers. This property is not needed for current utility operations, making it an efficient way to generate additional value for the community. Lease rates are set in line with comparable commercial ground leases.

In 2025, payments for leased land on the Utility Parkway campus totaled approximately $36,000. All revenue is reinvested into the utility, helping offset costs for all customers and supporting ongoing electric system improvements.

What rates do crypto mining customers pay?

Rates for large commercial customers are more complex than residential rates and typically include both demand and energy charges. A range of rate structures exists to reflect different usage patterns and load requirements. The rates are designed to fairly allocate the cost of serving each group of customers. Cryptocurrency mining customers do not receive preferential rates compared to other customers.

Because cryptocurrency mining operations have high power demand, they operate under interruptible rate agreements. These agreements guarantee that CFU can turn off their power when energy supply is tight. The agreements also protect the community and ensure crypto mining customers are paying their fair share for the energy they use and all infrastructure costs. The agreements have been discussed and voted on at previous public CFU Board of Trustees meetings.

Is CFU profiting from crypto mining?

Cedar Falls Utilities is a community-owned public utility. We are here to provide reliable and affordable service to the whole community, not to maximize profits. We keep rates as low as possible for all customers. Cryptocurrency mining operations are not getting preferential treatment. Over the past five years, revenue from cryptocurrency mining operations has helped significantly offset costs that support our entire customer base. Rates have been lower for all customers because of crypto mining customers in Cedar Falls.

Why are there CFU images on Simple Mining’s materials and social media pages?

We share customer frustration with the characterization of the CFU and Simple Mining relationship. There is no business partnership between CFU and Simple Mining. Simple Mining is using our images without permission.

What does CFU think about future projects in the Industrial Park?

We share customer concern with the scale of proposed future projects, which would be much larger than current crypto mining operations in Cedar Falls. While CFU has an obligation to serve all types of customers, we urge the City to proceed cautiously with any zoning ordinance amendments that would allow future crypto mining projects or data centers. Adding a large-scale load would require intense study and a thorough evaluation of the impacts on our system. We are planning to convey this concern at future public meetings, including the April 22 Planning and Zoning meeting.