We will shed some light on mining hotels (colocation hosting for miners): namely, what is a mining hotel, how it works and where it is located. In short, we are going to be describing how they work and what some of the biggest ones currently look like.
This may be a solution if you’re a miner that is stuck for space or finds it hard to house hardware, or just doesn’t want to deal with infrastructure such as power supply while developing a mining business.
What does “Mining Hotel” or hosting for miners mean exactly?
Seems that the crypto market has entered a distinct bearish phase. Although the price of Bitcoin is falling to under $8k, the number of miners and enthusiasts is still rising, as is the number of so-called “mining hotels”.
The term “mining hotel” is actually quite adequate as the functionality is exactly that of a hotel. You basically rent a space with other miners. You still have to pay the electricity bill, which may be slightly higher depending on the mining hardware you use.
It sometimes can be referred to as a mining colocation center (or just ‘colo’), or carrier-neutral data center /carrier hotel in some cases. Basically, it’s the practice of housing privately-owned servers, miners and networking equipment in a third-party data center.
Instead of keeping GPU or ASIC miners in-house, in offices or at a private data center, companies can choose to ‘co-locate’ their equipment by renting space in a “mining hotel”.
Therefore, unlike other kinds of hosting where customers can rent hashrates on a server owned by a hosting provider, with “mining hotels” the customer already owns the server and rents the required physical space to house it within its data center.
Take a look at Colohub Mining Hotel in Iowa, US
Pros and cons of using mining colocation services
Home-based miners find it difficult to house all the bulky, noisy, power-hungry equipment: their flats or garages are unsuitable, and offices are often too expensive.
Mining equipment also requires specific temperature conditions and cooling systems that are nearly impossible to set up at home or in the garage or office. While it’s quite difficult to estimate how many dorm-room cryptocurrency miners exist globally, what dorm miners don’t pay for in electricity, they pay for in discomfort.
- Dedicated IT support
- Reliable power supply
- Maintenance costs are lower
- Remote access to your mining machines
- Professional cooling & humidity control systems
The list of known mining hotels
These guys from Quebec offer 3 mining facilities powered by hydroelectric power plants and Bitmain ASIC miners for sale. Electricity cost is around $95 USD kW/month, the stated uptime is 95%. GPU-based rigs and farms are also welcome here.
The price is ~$85 USD per kW + $23 one-time setup fee. Plus, there is an option for custom hosting. Payments available via bitcoins and international wire transfer.
This hosting company is located somewhere in the US. They offer hosting for ASIC miners (not selling them though) and custom mining hardware.
The price is $80 USD per kilowatt, the final monthly price is calculated based on the actual watts used by your mining machines.
Tech-savvy people with a 100,000 ft2 decommissioned US military depot located in Ogden, Utah (USA).
The price is $149 per kW a month. For this, you get full insurance coverage and SLA-based agreements on a power supply and network connection. They take credit cards, wire transfers or BTC/BCH payments.
Another hosting center, working exclusively for miners. The company is based in Georgia, which has one of the most loyal legislation for miners. Also, there is a branch in London, UK.
The price is $0.12 for 1 kWh which is really low. 0% taxes policy for miners in Georgia also a huge plus. However, do your own research and go for their thread on BitcoinTalk for more information.
This is likely the winner of our rating. US-based company with pricing from $0.10 cents per kWh. Apparently, they have highly qualified IT and hardware specialists who will take care of your mining farms properly.
List of other worth mentioning mining colocation companies:
Fixed prices for each supported ASIC miner (for GPU or custom hardware you should get quote)
Colocation is located on the Isle of Man (offshore zone). The company operates since 1996.
$90 per kW per month.
Located in Tucson, Arizona. No initial setup fee, all equipment within the facility is insured. Payments available in BTC (Bitcoin), DCR (Decred) and ZEN (Zencash).
0W-1000W: $150 / month per miner (Obelisk, Baikal)
1001W-1500W: $200/ month per miner (Antminer, Innosilicon, Halong)
1501-2000W: $275 / month per miner (Antminer T9, Pangolin, Ebang)
Above 2000W – estimated individually (ASICminer, Pantech)
Located in northern Sweden, the monthly price is €79 for kWh.
Netherland-based colocation with all-in-one rate of € 115 kW per month.
The facility is located in South Florida (USA), rates are unknown.
Also, you may find lots of regular data centers providing mining colocation services, so the market isn’t limited to some hosting companies that work exclusively with miners.
Mining Hotels are definitely a viable option to house your own mining hardware if you have a small budget to do your own mining facility. Whether you’re starting out and stuck for space but would rather run your own rigs, this seems like a good idea. Many companies outsource their systems in order to have higher security and backed connections.