7 steps to choosing the right colocation solution for your computing needs

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There are many factors to consider in choosing the right data center to host your cryptocurrency mining, blockchain, or high-powered computing (HPC) operation – and this process has only become more challenging as the space has grown more competitive and as digital assets have continued to boom in popularity.

Ultimately, you want to choose the option that will provide the optimal environment your equipment and help support the greatest efficiency for your operation. There are many factors that play into this, and some are undoubtedly more important to you than others, from location and energy-efficiency to scalability and beyond.

Here are seven of the key factors to keep in mind to ensure you go with the colocation provider that will have the biggest possible impact for your application.


Maximizing ROI starts with minimizing costs, and the location of your data center plays a critical role in this. It is important your operation is hosted in a cost-competitive environment with additional consideration to the environmental, regulatory, and geopolitical stability of the region.

In this regard, the U.S. in particular is able to benefit from being a free market economy. Communism and similar geopolitical structures in other parts of the world can result in unpredictable government interference. There is even precedent in other countries for the government to seize mining equipment – something the U.S. has laws to specifically protect against.

Energy costs

A key component of location is also that location’s energy costs. A data center strategically located near reliable and cost-efficient renewable energy can reduce your operating costs while also benefiting the environment. It is also important these energy costs are stable, as certain parts of the world can experience significant seasonal fluctuations on this front.


When you invest meaningful time and resources toward a high-powered computing application, it is important that investment remains protected. For data centers, this means 24/7 surveillance, monitoring, and support to ensure your equipment and your data remain safe and operational. You might also pursue a data center partner that provides alerts for things like low hashrate, chip errors, or temperature alerts to prevent unexpected operational damage to your hardware.

Managed services

Another critical concern for long-term profitability is the maximization of uptime, as any downtime due to equipment issues or damage is ultimately a loss of revenue. Your hardware cannot drive revenue if it is not online and operational.

A reputable managed services partner should go the extra mile to ensure you are maximizing hashrate and revenue on a 24/7 basis. HPC is a fast-paced environment, and managed services features like daily monitoring, troubleshooting, upgrades, miner configuration, firmware management, and more can make the difference between long-term profitability and a short-lived hobby.

A modern, high-quality managed services provider should equip you with full remote visibility of your operation, in addition to deploying onsite technicians to handle issues as they arise. This also reduces expenses by eliminating the need to travel or to hire your own staff to operate and maintain your infrastructure.


At the outset, it is imperative the facility is specifically designed to host your application – whether in crypto, machine learning, IoT, or another HPC endeavor. It is then even more important the facility is capable of running and scaling quickly and effectively. In that regard, multiple price points can serve to work cooperatively with your budget as your operation and your needs grow.


Cryptocurrency and blockchain are highly complex industries with challenging barriers to entry for many prospective miners and investors. If your data center offers nothing beyond four walls and a power source to host your equipment, you will be left vulnerable to rapid changes in the marketplace.

Partnering with experts trained in technology and expertise can help ensure you navigate changes as they arise to continue successfully scaling your operation in the long term.


Your data center should be built to optimize power and heat management within a tightly integrated framework – and it should also be able to host your hardware. This may vary depending on which cryptocurrencies you intend to mine, but hosting your hardware in an energy-efficient facility is another key component of maximizing hashrate and profitability.

Experience industry-best colocation services with Compute North

Compute North owns and operates state-of-the-art TIER 0™ data centers strategically located throughout the U.S. to take advantage of cost-competitive renewable energy.

The TIER 0TM data center concept serves as a next-generation solution for high-powered computing. The modular data center design provides flexibility as to when and how you grow, capable to achieving launch timelines of weeks or months versus years.

Each of our facilities is strategically built to scale quickly and to operate cost-effectively to help you maximize your capability in non-mission critical applications such as cryptocurrency mining, blockchain, image rendering, machine learning, and other edge computing applications where redundancy is built in and latency is not a key driver.

We offer fully managed services to oversee all aspects of your operation with hands-on, professional support. Benefits of our blockchain hosting services include:

  • Cost-competitive infrastructure powered by renewable energy
  • Secure environment to keep your hardware and your data safe
  • Core infrastructure with power, space, ambient air cooling, internet access, physical racks, and security
  • And more

Contact us to learn more.

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