Benefits of Data Mining Centers and Farms

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What is a Mining Farm?

Cryptocurrencies such as Bitcoin used to be primarily farmed through individual computers using CPUs, then moved to GPUs. CPU stands for Central Processing Unit, whereas a GPU stands for Graphics Processing Unit. With the success of mining cryptocurrencies, there was a need to scale-up the operations from individual computers to something bigger. This would increase the revenues generated from mining among other benefits. This is the reason why the concept of mining farms was initiated.

As you can imagine, a collective set of GPUs would have a higher capability for mining compared to a single GPU. Mining farms were developed to increase the processing power of blockchain transactions, which are the building blocks of cryptocurrency mining. Mining farms are a collection of a large number of mining computers operating in one facility. Mining farms are expensive to set up and maintain but once it is ready, it can create substantial revenue. Apart from the monetary expenses of running a mining farm, there is a certain level of expertise needed to keep the mining farms running smoothly. That is where the need for a data farm comes in.

What is a Data Center?

Data centers and farms are used to store the infrastructure required for cloud servers at one location. Data farms are designed to facilitate infrastructure through reliable power and connectivity. They are efficient at scaling up of the operations while minimizing the need for hardware downtime for maintenance. Here are some of the benefits they offer:

Benefits of Bitcoin Mining Centers and Farms:

  • Access to cheaper power

Generating revenues is one of the primary objectives of mining, but at the end of the day, it’s all about the profit and that is why the cost of mining operations is so important. The order of magnitude of total global electricity required for data mining has got into the terawatt numbers. Cheaper electricity is a game-changer when it comes to cryptocurrency mining. No wonder, individual miners have been flocking to different regions of the world that offer cheaper electricity. A similar concept applies to data mining centers and farms. Where individual miners are looking for cheaper electricity, large mining farms are also looking at ways to reduce electricity costs. Hosting your mining rigs at data mining centers could be a way to reduce your electricity costs. Rather than paying astonishing high utility bills, you can pay the cost to host your mining rig at a mining data center. How beneficial this could be will depend on each case. Factors such as location, cost of electricity, the processing power required, time spent mining, and other factors will all contribute to determining the most efficient model for a particular mining rig.

  • Infrastructure for cooling purposes

The demand for Bitcoin hardware is increasing, and along with that the demand for data centers is also increasing. The ability of the data center to provide specialized cooling systems such as immersion cooling is a key benefit. In a typical data center, the servers are stacked in a design that allows for ideal cooling management including airflow. The high processing power requirement of mining means the hardware equipment gets hot and an effective cooling system is needed to keep the hardware safe and continue mining without any disruptions. The design includes using industrial shelving units. This also allows for quick and easy server replacement in case of any maintenance is needed on a particular unit. The overall installation design is very open, allowing for a more conducive environment as a cooling facility. Airflow is allowed to reach on all sides of the servers. The geographical location of the mining center is also critical to efficiency as a cooling facility. The outside temperature is going to affect the overall energy consumption of keeping the servers cool. Along with ideal temperature, the data mining centers also control moisture levels to keep the servers in optimum condition. Dust on servers can also hinder in ideal cooling of the system. The high level of cleanliness at a  data mining center also provides a more conducive environment for optimum cooling of the machines.

  • Reliable internet connectivity

Hardware for mining has been the most talked-about requirement for cryptocurrency mining. The processing speed of the computer or the memory size of the graphics card has gained a lot of attention when it comes to mining. The amount of bandwidth required form cryptocurrency mining depends on a few different factors such as the coin being mined, the speed of mining, and the type of pool connection. For the internet utilization in mining, the reliability of the connection is more important the speed. Even cellular connectivity can be used to perform cryptocurrency mining. Although that is not recommended unless you have a stable cellular service that will not be disturbed by any unexpected calls or other disruptions.

There are internet connectivity benefits of data centers. If needed data centers can quickly switch to a different internet service provider without any disruption to the connectivity. Internet is used in mining to sync the miner’s progress with the pool and the blockchain. The bandwidth required to do this might not be much, but a consistent availability of the internet is critical. If you mined shares are not sent on time, the progress of a miner will be extremely slow or even result in invalid shares. Keep in mind, for very high hashrate networks, there might be a slight increase in bandwidth requirement, but with modern-day internet speeds, it should still not be significantly high.

  • 24 x7 technical support

With your hardware being hosted at home or your warehouse, you will need to provide technical maintenance and troubleshooting yourself. Any downtime caused by maintenance or troubleshooting means lost time that could be used for mining. The downtime can also mean lost progress of ongoing mining activities. Keep in mind that with cryptocurrency, the hardware is being pushed to maximum capabilities. It is different from just using your desktop for everyday activities or gaming.  When boundaries are pushed, the probability of hardware malfunction increases. That is why you need a data mining center. With a data center, trained staff is available 24 x 7 to offer technical support. Having this facility available to you could be the difference between the success and failure of cryptocurrency mining.

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