Bitcoin Miner Colocation: The Complete Guide to Hosting Your ASICs

Bitcoin mining colocation — hosting your ASIC hardware in a purpose-built facility instead of running it at home — has become a critical strategy for miners who want industrial-grade uptime without building out their own infrastructure. But not all colocation is created equal, and the decision to colocate is about far more than cheap electricity.

This guide breaks down what miner colocation actually involves, why it matters for the decentralization of Bitcoin’s hash rate, and what to look for when choosing a hosting provider — including how D-Central’s Quebec-based facility operates.

What Is Bitcoin Miner Colocation?

Miner colocation is the practice of placing your personally owned ASIC mining hardware in a third-party facility that provides the electricity, cooling, networking, security, and maintenance your machines need to run 24/7. You retain full ownership of your miners and connect them to your own mining pool and wallet. The hosting provider handles the physical infrastructure.

Think of it as renting rack space for your miners the same way a web developer might rent server space in a data centre. You own the hardware. The facility provides the environment.

How Colocation Differs from Cloud Mining

This distinction matters. Cloud mining means you are paying someone else to mine on your behalf — you never own hardware, and you are trusting a third party with your hash rate. History is littered with cloud mining scams. Colocation is fundamentally different: you own your miners, you control your wallet, and 100% of the mining proceeds are yours. The hosting provider simply keeps the lights on.

Why Colocation Matters for Bitcoin

Colocation is not just a business convenience — it is a tool for decentralization. Here is why it matters at a network level.

Hash Rate Distribution

When individual miners and small operations can affordably colocate their hardware, hash rate spreads across more independent operators instead of concentrating in a handful of mega-farms. Every independent miner running their own hardware — whether at home or in a colocation facility — contributes to a more decentralized, censorship-resistant Bitcoin network.

Accessible Scale

Not everyone can run a dozen S21 XPs in their garage. Residential power often maxes out at 200A service, noise is a real concern, and cooling 15+ kW of heat in a spare bedroom is not practical. Colocation lets individual miners scale beyond what their home electrical panel, noise tolerance, and cooling capacity allow — without surrendering ownership or hash rate control.

Energy Optimization

Professional colocation facilities are located where energy is abundant, cheap, and often renewable. D-Central’s hosting facility in Quebec runs on Hydro-Quebec hydroelectricity — among the cheapest and cleanest power on the continent. This is a structural advantage that most home miners simply cannot replicate.

The Real Advantages of Colocation

Lower Electricity Costs

Electricity is the single largest ongoing expense in Bitcoin mining. Residential electricity rates in Canada range from $0.10 to $0.20+ per kWh depending on province and tier. Commercial and industrial rates at colocation facilities — especially those in Quebec — can be significantly lower. Over the lifespan of an ASIC miner, this difference compounds into thousands of dollars of savings.

Professional Cooling Infrastructure

ASIC miners generate enormous heat. A single Antminer S21 XP produces roughly 5,000 BTU/hr — equivalent to a small space heater running full blast. Scale that to ten units and you are dealing with 50,000 BTU/hr in a confined space. Professional colocation facilities have industrial cooling systems designed to handle this thermal load efficiently. In Quebec, cold winters provide natural cooling advantages that further reduce energy consumption.

24/7 Monitoring and Uptime

Downtime is lost revenue. Every hour your miner sits idle is an hour of hash rate you are not contributing — and an hour of potential block rewards you are missing. Colocation facilities monitor hash rate, temperature, power draw, and network connectivity around the clock. When something goes wrong, on-site technicians respond immediately rather than waiting for you to notice a silent miner in your basement.

Physical and Network Security

Mining hardware is valuable. A modern ASIC miner represents thousands of dollars in equipment. Colocation facilities provide CCTV surveillance, access controls, GPS tagging on equipment, and enterprise-grade network security. This level of protection is difficult and expensive to replicate at home.

On-Site Repair Capability

This is where D-Central’s colocation model stands apart. Our ASIC repair centre operates from the same Laval, Quebec location as our hosting facility. If your hosted miner develops a hashboard fault, a fan failure, or a control board issue, our certified technicians diagnose and repair it on-site — no cross-country shipping, no weeks of downtime. This integrated hosting-plus-repair model is rare in the industry.

What to Look for in a Colocation Provider

Not all hosting providers operate with the same standards. Here is what separates a trustworthy facility from a potential liability.

Transparent, All-Inclusive Pricing

Beware of providers advertising rock-bottom rates that exclude electricity, cooling, or management fees. By the time you add up the real costs, the “cheap” hosting is not cheap at all. Look for all-inclusive pricing that covers electricity, internet, physical space, monitoring, and support in a single rate. D-Central’s hosting rate of $75 CAD per kW per month covers everything — no hidden fees.

Power Source and Reliability

Ask where the electricity comes from. Hydroelectric, solar, wind, and natural gas all have different cost profiles and reliability characteristics. Hydro-Quebec’s grid is among the most stable and affordable in North America, which is why Quebec has become a hub for Bitcoin mining operations. Also verify that the facility has backup power systems to handle grid interruptions.

Hardware Ownership and Wallet Control

This is non-negotiable. You must retain full ownership of your mining hardware, and you must connect to your own wallet and mining pool. Any provider that requires you to mine to their wallet — even temporarily — is a red flag. Your hash rate, your sats.

Repair and Maintenance Capability

Hardware fails. ASIC miners run at extreme temperatures under continuous load, and components wear out. Ask whether the provider has on-site repair capabilities or whether your miner gets shipped to a third-party repair facility. On-site repair means days of downtime instead of weeks. D-Central’s technicians have repaired thousands of ASIC miners across 40+ models from Bitmain, MicroBT, Canaan, and more.

Contract Terms

Read the fine print. Key items to verify:

• Minimum contract length — D-Central requires a 3-month minimum
• Prepayment requirements — typically 2 months upfront
• Load shedding policy — Quebec hosting is subject to occasional winter load shedding during peak Hydro-Quebec demand; a reputable provider will communicate these periods in advance
• Installation fees — one-time setup costs (D-Central charges $50 CAD per unit)
• Exit terms — how you get your hardware back if you leave

Physical Location and Visitability

If you cannot visit the facility, that is a warning sign. D-Central welcomes facility tours by appointment at our Laval, Quebec location. Seeing where your miners live, meeting the technicians who maintain them, and verifying the security measures firsthand builds the kind of trust that a slick website cannot.

D-Central’s Hosting Model: Quebec-Based, Miner-Owned

D-Central has operated Bitcoin mining hosting since 2016 from our facility in Laval, Quebec. Here is how our model works:

• Location: 4479 Desserte Nord Autoroute 440, Laval, QC, H7P 6E2
• Power source: Hydro-Quebec hydroelectricity
• Rate: $75 CAD/kW per month, all-inclusive
• Ownership: You own your hardware, you control your wallet, 100% of proceeds are yours
• Minimum miners: No minimum — one unit or a full container
• On-site repair: Certified ASIC repair technicians work in the same facility
• Monitoring: 24/7 hash rate, temperature, and power monitoring with alert-triggered response
• Security: CCTV, access controls, GPS tagging on all equipment
• Support SLA: 48-hour ticket response, 24/7 monitoring
• Uptime guarantee: 95%+

We accept Bitcoin payments. Contact us at 1-855-753-9997 or [email protected] to discuss your hosting needs.

Colocation vs. Home Mining: When Each Makes Sense

Colocation is not always the right answer. For many miners — especially those running quieter, lower-power machines — home mining is the better play. Here is a practical framework:

Home Mining Makes Sense When:

• You are running 1-3 low-power miners (Bitaxe, NerdAxe, or a single underclocked ASIC)
• You can use the waste heat productively — Bitcoin space heaters turn your heating bill into a mining revenue stream
• Your residential electricity rate is competitive (under $0.10/kWh)
• Noise is manageable (basement, garage, or sound-dampened enclosure)
• You value the sovereignty of running your own infrastructure at home

Colocation Makes Sense When:

• You want to run 3+ full-size ASICs (S21, S21 XP, M60S, etc.)
• Your residential electricity rate is above $0.12/kWh
• Noise, heat, or electrical capacity limits your home setup
• You want professional monitoring and faster repair turnaround
• You want to scale your operation without renovating your home

Many experienced miners do both: run a Bitaxe or space heater at home for the cypherpunk satisfaction of home mining, and colocate their high-power fleet in Quebec for the economics.

The Decentralization Argument for Colocation

There is a tension in the Bitcoin mining community between the ideal of home mining and the reality that colocation facilities concentrate hardware in specific locations. But this framing misses the point.

The real threat to decentralization is not colocation — it is custodial mining, where a single entity controls both the hardware and the hash rate. Cloud mining, hash rate rental schemes, and mega-farms where one company owns and operates everything — these are the centralizing forces.

Colocation, done right, is the opposite. Individual miners retain ownership of their hardware and direct their hash rate to the pool of their choice. A colocation facility with 100 different miners running their own rigs and pointing at 20 different pools is more decentralized than a single mega-farm of equal hash rate controlled by one entity.

The key is choosing a provider that respects this principle: your hardware, your wallet, your pool, your hash rate.

Getting Started with Colocation

If you are considering colocation, here is a practical step-by-step:

1. Inventory your hardware. Know the exact models, power consumption (watts), and hash rate of each miner. This determines your kW requirement and monthly cost.
2. Calculate your current home mining costs. Factor in electricity rate, cooling costs, and any noise/heat issues. Use a mining profitability calculator to model both scenarios.
3. Research providers. Compare rates, contract terms, location advantages, repair capabilities, and ownership policies. Ask for references from existing customers.
4. Visit the facility. If possible, tour the hosting site before committing. Verify the security, cooling, and maintenance claims firsthand.
5. Ship or deliver your hardware. Once you have signed a contract, coordinate hardware delivery. D-Central can have your miners operational within days of receiving them.
6. Configure your pool and wallet. You retain full control of where your hash rate goes and where your rewards are deposited.
7. Monitor remotely. Most providers offer dashboards or alerts. D-Central monitors all hosted equipment 24/7 and responds to issues proactively.

Frequently Asked Questions

{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “How much does Bitcoin mining colocation cost?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Rates vary by provider and location. D-Central’s all-inclusive rate is $75 CAD per kW per month, covering electricity, internet, space, monitoring, and support. There is also a one-time installation fee of $50 CAD per unit. Always compare total costs, not just headline rates — some providers advertise low base rates but charge separately for cooling, management, or network access.”
}
},
{
“@type”: “Question”,
“name”: “Do I keep ownership of my miners in a colocation facility?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “With any reputable provider, yes — absolutely. You retain full ownership of your hardware. You connect to your own mining pool and wallet, and 100% of the mining proceeds go directly to you. The hosting provider supplies infrastructure, not custody. If a provider wants to control your wallet or pool settings, walk away.”
}
},
{
“@type”: “Question”,
“name”: “Is there a minimum number of miners required for colocation?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “This depends on the provider. D-Central has no minimum miner requirement — you can host a single unit or a full shipping container of ASICs. Some larger hosting operations may require minimums of 10+ units. Ask upfront before signing a contract.”
}
},
{
“@type”: “Question”,
“name”: “What happens if my miner breaks while colocated?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “This is one of the biggest advantages of choosing D-Central. Our ASIC repair centre operates from the same Laval, Quebec facility as our hosting operation. If your miner develops a fault, our technicians diagnose and repair it on-site — no shipping delays. With other providers, a broken miner may need to be shipped to a separate repair facility, adding weeks of downtime.”
}
},
{
“@type”: “Question”,
“name”: “What is winter load shedding in Quebec?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “During extreme cold snaps, Hydro-Quebec may request large power consumers to temporarily reduce load to keep the residential grid stable. This can mean brief periods of reduced mining capacity. Reputable Quebec hosting providers communicate these events in advance and work with you to minimize the impact. The trade-off is worth it — Quebec’s hydroelectric rates are among the lowest in North America for the rest of the year.”
}
},
{
“@type”: “Question”,
“name”: “Is colocation better than mining at home?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “It depends on your situation. If you are running a few low-power miners and can use the waste heat (Bitcoin space heaters, for example), home mining is excellent. If you want to scale beyond what your home electrical panel, noise tolerance, or cooling capacity allows, colocation is the practical path. Many miners do both — a Bitaxe at home for the sovereignty, and a fleet of S21s in a Quebec colocation facility for the economics.”
}
},
{
“@type”: “Question”,
“name”: “Does colocation hurt Bitcoin decentralization?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Not when done correctly. The threat to decentralization is custodial mining — where one entity controls both hardware and hash rate. In a properly structured colocation arrangement, each miner owns their hardware, chooses their pool, and controls their wallet. A facility hosting 100 independent miners pointing at different pools is more decentralized than a single mega-farm of equal hash rate.”
}
},
{
“@type”: “Question”,
“name”: “How do I get started with D-Central hosting?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “Contact us at 1-855-753-9997 or email [email protected]. We will discuss your hardware, power requirements, and timeline. The minimum contract is 3 months with 2 months prepaid. We accept Bitcoin payments. Your miners can be operational within days of arrival at our Laval, Quebec facility.”
}
}
]
}