Why you should avoid a general data center for mining colocation

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Date Published

07/17/2018

Cryptocurrency mining popularity is at an all-time high, which makes it harder than ever to be successful at crypto mining. Mining equipment is more expensive and requires more energy than ever before. The solution that serious miners are turning to is mining colocation.

Mining colocation makes sense. It’s a cost-effective way to continue or even scale up your mining efforts. It’s no longer viable to mine from your home, and colocation gives you the space, power, and cooling to keep your mining equipment running at maximum capacity. Or at least it should. Unfortunately, many miners are sending their expensive rigs to general data centers that simply aren’t equipped for the high-powered requirements of crypto mining.

Data Centers Are Trying to Get into the Crypto Game

The immense popularity of crypto mining has led many data centers to start offering mining colocation as a service. And why not? It’s an opportunity for them to fill their unused space and make more money. They’ll just slide your Bitmain miners right alongside a few hard drives or Gavin Belson’s Signature Box and give you the thumbs up to start mining. If that sounds like a recipe for disaster, then you’re right. Here’s why you shouldn’t use a general data center for mining colocation.

Data Centers Don’t Have the Right Power

General data centers exist to cram as much data into a single facility as possible. At a data center, empty space means they need to sell more. A mining colocation facility, on the other hand, typically has a lot of open floor space to ensure it’s not overloaded. This allows all your mining equipment to get the power it needs to run efficiently all day long. A general data center may promise you a certain number of Kilowatt hours but only be able to deliver around 75% of that because of the vast power needs of their other equipment. This loss of computing power will be a huge loss in profit for your mining operations.

Data Centers Don’t Have the Proper Cooling

Whether you’re running GPUs or ASICs, your miners produce a lot of noise and a lot of heat. That heat has to be kept in check or they’re going to burn out fast and leave you with no coin. General data centers aren’t equipped with the extreme cooling measures necessary to keep miners running all day long. A good mining colocation facility will have high-powered cooling that’s always on and always blowing directly on your miners. If a general data center offered that, then you’d be looking at a massive hike in cost that would offset whatever coin you’re mining.

Data Centers Are More Expensive

General data centers typically pride themselves on two things: security and redundancy. They use the most advanced security systems available to ensure all sensitive data is on complete lockdown. They invest in multiple layers of redundancy to ensure maximum uptime so you can access data every second of the day, even while you’re sleeping. They boast about being Tier 2 data centers and promise you that you’ll be able to mine 24/7/365 with complete backups to everything. While these are great advantages for anyone who has sensitive data needs, these things aren’t necessary for crypto mining. They also drive costs through the roof. And in the crypto mining game, even a few extra dollars a day can turn your mining efforts into a complete bust. Sure, you might successfully verify one more transaction a month because you were up for two more minutes, but the extra money you pay for all these added features will more than negate these efforts.

Data Centers Lack Cryptocurrency and Mining Expertise   

A general data center doesn’t employ mining or cryptocurrency experts. Their teams may consist of a range of IT experts who are very skilled at what they do, but they don’t know the ins and outs of the mining industry. They haven’t worked with every type of miner on the market, and they don’t know the proper setup or how to troubleshoot the wide range of mining hardware. They also can’t offer you any consulting advice regarding the best mining equipment for the cryptocurrency you’re targeting. Using a general data center for mining colocation is the equivalent of taking your Tesla to a quick lube shop. They may have a general idea about cars, but they don’t have the foggiest idea about how to handle your specific machine.

Colocation Built By Miners For Miners

To be successful at crypto mining, you need a colocation facility that was specifically built to handle the demands of mining. That requires a lot of power, space, and cooling all delivered at a competitive price. The best choice for mining colocation is a facility that doesn’t host anything other than mining equipment. Compute North’s strategic facilities are built by miners for miners to deliver the cost-effective power you need to keep all your mining equipment operating at maximum capacity so you can make the most of your investment. Contact us today to learn more about our colocation services.

Date Published

07/17/2018

Author

First Scribe

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