Why Host Your Bitcoin Mining Server at at Colocation Data Center?

If you are into mining bitcoins, you probably already have access to a high-speed computer capable of carrying out the operations needed to solve the complex problems with bitcoin mining. Further, if you yourself run a data center, you may be wondering whether or not to have it in the comfort of your own home or office or move it to a data center. While you may not like to accept it, the best option for you would be to host your mining servers in a data center. The main reason for this is that the scale of your operation is bound to increase over time, and you may not be able to accommodate all of the servers in your house or even in your workplace.

This may seem like a counter-intuitive move because it is obviously cheaper to place the servers in a place that you own. But, as time passes, you will start facing the cons of doing such a thing. Starting and carrying out a bitcoin operation requires a huge amount of financial investment, not only in terms of the electrical costs. Excluding this, there are several other areas that you will have to spend on if you want to be successful, and often, it may be too late before you realize how in over your head you are.


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Listed below are a few costs that will tell you exactly why your servers should be in a colocation data center and not in your home or office-

  1. Electrical Infrastructure Costs- you will have to install 20×20 amp power outlets in your facility to support the level of operations. Further, you will only have 38 400 watts of consumption available to you.
  2. Cooling Infrastructure Costs- when you conduct such a large-scale mechanical operation for prolonged periods of time, you need to keep your machines cool constantly. Research has shown that to cool the working space, about 40% extra electricity will be needed outside of the regular power consumption. This itself raises the amount of money that is to be spent on electricity by almost fifty percent. Doing this for several years will burn a huge hole in your pocket. Additionally, for the space to be cooled, you need to install 6 tons of air conditioning, and these are not going to come cheaply either.
  3. Long Term Opportunity Costs- the difficulty of bitcoin mining only progresses with time. Therefore, you may want to seriously reconsider the idea of installing plugs that have 20×20 amps as well as 6 tons of air conditioners to ensure that your systems are kept cool throughout to avoid overheating and malfunctioning.

Now that you know going to a data center is the best option, you need to choose what is right. This will require some amount of research that could be time-consuming but will definitely save you a lot of money in the long run! Make sure that your data center promises you long battery life, an alternate power source, and a power backup in case one of your power sources fails.