SR5

This bill amends the Arkansas Data Centers Act of 2023 to impose new operational and ownership requirements on digital asset mining businesses. It mandates that these businesses implement noise-reduction techniques, such as liquid cooling or noise-dampening enclosures, or relocate to industrial zones or areas at least 2,000 feet from residential or commercial structures. The legislation limits the power of local governments to regulate or prohibit individuals from engaging in home-based digital asset mining. Furthermore, it prohibits 'prohibited foreign-party-controlled businesses'—defined as those with at least 15% ownership from foreign entities in countries subject to certain international arms regulations—from operating in the state. The bill empowers the Attorney General to investigate potential violations, seek civil penalties, and pursue judicial foreclosure against non-compliant entities. Finally, it includes an emergency clause to allow for immediate implementation due to concerns regarding noise pollution and national security risks.