On October 1, 2024, a Bitcoin mining company, NewRays, filed a lawsuit against an Arkansas County judge and prosecutor, alleging selective enforcement of noise regulations aimed at its operations. The complaint, submitted to the district court on September 26, claims that Judge Allen Dodson and prosecuting attorney Phil Murphy are enforcing local noise ordinances to discriminate against NewRays, which established its crypto mining data center in Faulkner County in October 2022.
NewRays argues that the noise ordinance violates the Arkansas Data Centers Act, enacted in April 2023, which is designed to protect data mining operations from discriminatory regulations. Following resident complaints, the county enacted decibel limits and sanctions, but NewRays asserts that the ordinance targets only its operations, despite other businesses generating more noise.
Legal complexities arose when NewRays sought to move a related civil lawsuit to federal court, but the county district court maintained jurisdiction. The complaint highlights a pattern of targeting crypto firms, which face scrutiny for their energy consumption, contrasting with the treatment of AI data centers.
NewRays is seeking both preliminary and permanent injunctive relief against the enforcement of the ordinance.