More and more crypto miner hosting has moved out of the home, garage or basement and into colocation space in data centers. The traditional warehouse style data center is a highly secure, high tech facility built to provide maximum up-time guaranteed. Biometric security, surveillance, uninterruptible power sources, redundant HVAC systems, multiple internet connections and security cabinets are all part of the typical offering. These services while necessary for many corporate customers, are expensive to offer and accordingly, they add to the cost structure of the facility.
The pricing levels of the traditional data center are often too high for a crypto miner to operate profitably. Additionally, the ASIC mining rig is a straight forward, durable machine with fewer needs than a complex server running many complex functions. Once the ASIC is set up and started, it pretty much runs itself. Performance issues and minor fixes will arise from time to time, but most of the time the rigs run themselves. Why pay for unnecessary services when there is a more cost effective colocation solution? With a limited set of needs, the ASIC can effectively be run and managed in a crypto specific data center. With mining profits languishing, many are looking for ways to lower their cost structure to stay in the game.
There has been an emergence of crypto mining specific data centers that I have followed closely. They operate at more realistic price points and offer a stripped down version of the traditional data center. Typically colocation in the northern states is more competitive due to the cooler climate. Cooling costs money and adds significantly to cost structure, but excessive heat will burn up your rigs, so I have limited my focus to the northern states.
Most importantly, miners need power, cool climate, ventilation, security and tech support. As a miner, I have an interest in finding a better colocation solution for my rigs. I see an opportunity to undercut the pricing of the traditional data centers and incentivize others to move their rigs into a more cost effective solution. By focusing exclusively on crypto mining and building on a scalable site, I can offer competitive pricing to miners in a full service hosting environment.
I have been surprised to see how important political climate has proven to be. Recently areas with access to cheap power like Washington and parts of New York have banned crypto mining at the local level. Even the lucky few who set up early mining operations in these areas are now dealing with rate hikes and expansion moratoriums. Development of a data center is a serious commitment and I have learned that the right location and political environment is really important.
What we found in Ohio was especially refreshing. The Mayor has welcomed us enthusiastically and the community is thankful for the investment and job growth that we are bringing to their town. This is the kind of business that appeals to me. A business that solves a problem for one group without causing a new problem for another group. I believe we have a win win situation here. We are live in Ohio, we are happy to be here and they are happy to have us.
To learn more about our story go to www.boxminer.io
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