The convergence of cryptocurrency mining and artificial intelligence infrastructure is gaining momentum, with Bitcoin mining colocation provider Revolve Labs at the forefront of this transformation. The company is now shifting focus from traditional mining expansion to developing a state-of-the-art AI data center in central Minnesota—marking a strategic pivot that reflects broader industry trends.
This new venture follows community pushback against previous mining expansion plans, prompting Revolve Labs to explore quieter, more sustainable operations. The proposed AI data center project in Glencoe, Minnesota, is expected to cost between $40 million and $60 million, with a projected capacity of 10 megawatts. If approved, it could signal a new era for hybrid energy-intensive tech facilities in mid-sized American cities.
Strategic Shift from Mining Expansion to AI Infrastructure
Revolve Labs initially gained traction in Minnesota through its existing Bitcoin mining facility in Glencoe, which operates at approximately 20 megawatts and delivers a hashing power of 537 PH/s. However, attempts to expand into Windom were withdrawn last month due to community concerns over noise pollution—a common challenge for high-powered mining operations.
Rather than retreat, the company adapted. In September, Revolve Labs engaged with the Glencoe Economic Development Authority to propose a new direction: constructing one or two AI data centers on a combined 6.2-acre land parcel. The plan includes building a dedicated power substation, along with cooling systems and backup generators—critical components for high-performance computing environments.
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This shift underscores a growing trend: companies leveraging existing energy access and industrial-grade power infrastructure to transition into AI computing, where demand for processing power continues to surge.
Why AI? The Quiet Advantage Over Crypto Mining
One of the most compelling reasons behind Revolve Labs’ pivot is noise reduction. Unlike traditional Bitcoin mining rigs that rely on thousands of constantly running ASICs generating significant decibel levels, AI data centers operate with more advanced, optimized hardware that runs quieter and more efficiently.
Jeff St. Onge, senior operations manager at Revolve Labs, emphasized this advantage: “AI is much quieter than crypto mining.” He added that the new facility will incorporate built-in noise mitigation measures, aiming to avoid the backlash seen in other communities.
Beyond acoustics, AI data centers align better with long-term sustainability goals and community relations. With lower noise output and higher value per watt, these facilities offer an attractive alternative for municipalities seeking economic development without compromising residents’ quality of life.
Economic Impact: How Bitcoin Mining Funds Public Growth
Even as Revolve Labs transitions toward AI, the legacy of its Bitcoin mining operation remains vital to Glencoe’s economy. According to Dave Meyer, general manager of the Glencoe Light and Power Commission, the city has earned over $500,000 in net annual revenue from its partnership with the company.
This income stream has directly benefited local infrastructure:
- Funding municipal streetlight upgrades
- Preventing electric rate increases over the past five years
- Supporting grid stability and reinvestment in public utilities
“It’s a revenue stream that goes into our coffers and, quite frankly, keeps everything cheaper,” Meyer told the Minnesota Star Tribune.
Such financial contributions highlight how energy-intensive digital industries can create tangible public value—especially in smaller cities with available power capacity and industrial zoning.
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Project Details and Community Engagement
The proposed AI data center project is still under review. A public hearing on the zoning application is scheduled for October 29, giving residents and stakeholders the opportunity to voice support or concern.
Key project highlights include:
- Estimated investment: $40M–$60M
- Power capacity: 10 MW
- Land acquisition: Two parcels totaling 6.2 acres
- Job creation: Approximately 10 full-time positions
- Infrastructure upgrades: On-site power substation, cooling, and backup power systems
Local officials have expressed cautious optimism. By repurposing industrial land and leveraging existing energy assets, Revolve Labs’ proposal fits within Glencoe’s broader economic development strategy—balancing innovation with community well-being.
Industry Trend: From Bitcoin to AI—A Natural Evolution?
Revolve Labs isn’t alone in exploring this dual-use model. Across North America, both public and private operators are reassessing their crypto mining footprints in favor of AI co-location services, driven by several key factors:
- Soaring demand for AI compute power, fueled by generative models and large language networks
- High-margin revenue potential from enterprise AI clients compared to volatile crypto markets
- Better community acceptance due to reduced noise and improved efficiency
- Existing access to low-cost, abundant electricity—a shared requirement for both industries
This evolution doesn’t mean the end of Bitcoin mining; rather, it represents a diversification strategy. Companies like Revolve Labs are positioning themselves as flexible digital infrastructure providers, capable of adapting to market demands while maintaining strong community partnerships.
Frequently Asked Questions (FAQ)
Q: Why is Revolve Labs switching from Bitcoin mining to AI data centers?
A: The shift responds to community concerns—particularly noise—and capitalizes on growing demand for AI computing power. AI operations are quieter, more efficient, and offer stable revenue streams.
Q: Will the new AI data center still use the same power infrastructure as the mining facility?
A: Yes, the project leverages Glencoe’s robust electrical grid and plans to build a dedicated power substation, ensuring reliable energy delivery for high-performance computing.
Q: How many jobs will the AI data center create?
A: The project is expected to employ about 10 people, primarily in technical and operational roles.
Q: Is Bitcoin mining ending in Glencoe?
A: No. Revolve Labs continues to operate its 20 MW mining facility. The AI center represents an expansion into new services, not a replacement.
Q: What happens after the October 29 public hearing?
A: Following community input, local authorities will evaluate the zoning application and determine whether to approve construction permits.
Q: How does this benefit local residents?
A: The project promises continued economic benefits through tax revenue, infrastructure funding, and job creation—without the noise issues associated with large-scale mining.
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Looking Ahead: A Model for Sustainable Tech Growth
Revolve Labs’ proposed $60 million AI data center in Minnesota exemplifies how forward-thinking companies can evolve in response to technological and social pressures. By integrating lessons from Bitcoin mining—such as energy optimization and grid integration—the company is paving the way for a new class of hybrid digital infrastructure.
As AI adoption accelerates and communities seek responsible development, projects like this may become blueprints for balancing innovation with inclusivity.
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