Cryptocurrency mining is the production of new units of digital currency. Bitcoin, the first cryptocurrency, has become the most valuable and widely held among the hundreds of cryptocurrencies that have subsequently emerged. Bitcoin mining was done at home in basements and makeshift “mining farms,” but now we’re seeing an increase in data center mining by investors, mining conglomerates, cloud mining companies, and device manufacturers. In this article, we will explore crypto warehouse operations and crypto warehouse design considerations.
Why Large-Scale Mining is Now Necessary
Cryptocurrency mining has become exceedingly difficult as more people enter the market. The crypto mining process is how new units of digital currency are created. As crypto becomes more valuable, the crypto mining process becomes more difficult and requires greater computational power. To stay competitive in the crypto market, miners need to adopt larger-scale mining operations.
Large-scale mining operations have several advantages over smaller-scale operations. For one, large crypto mining warehouses can enjoy economies of scale by purchasing electricity and hardware in bulk. By operating at a larger scale, miners can maximize their profits and stay competitive in the crypto market.
Crypto Mining Warehouse Checklist
1. Optimize Mining Via Location Selection
When selecting a location for your crypto mining warehouse, it’s important to consider the climate and availability of power. The crypto mining process generates a great deal of heat, and without proper cooling, the hardware can be damaged. In addition, crypto mining consumes a lot of electricity, and electricity costs can quickly eat into profits. It’s therefore important to select a location with a cool climate and access to cheap power.
2. Building the Correct Warehouse
Designing a crypto mining warehouse must account for a unique set of circumstances, since the building is primarily computer storage. Current technology uses racks to hold the miners, but increasingly modular liquid-cooled units are being developed that will reduce electrical costs, but increase the space needed to locate equipment, as more of these modules will be used to increase profitability.
Sizing and Costs
One megawatt of equipment may be crammed into 1,000 square feet with bitcoin mining servers. On average, an industrial crypto warehouse will cover approximately 100,000 square feet. Costs will depend on what services will be needed during the initial construction and the price of raw land in the area. A 100,000 square foot building will require 2.29 acres, plus additional space for parking, external storage and other operational considerations. Since there is no retail traffic involved in a crypto mining operation, the facility could be located in a rural area to reduce the cost of land.
Insulation and HVAC
Heat is the greatest threat to a crypto mining facility, so the building needs to be well insulated, but more importantly, there needs to be an efficient HVAC system installed. Depending upon your local climate, you may remove the heat with fans, rather than cooling the building by providing AC.
Modular Ability
Crypto mining is an industry in constant flux, which means there is a need for modular ability within the warehouse design that will allow for quick adaptation. As mentioned earlier, racking systems are the current model to hold the individual miners, but companies with a more aggressive budget will use liquid-cooled modular units that will require more space within the building to install and move around than simple racking.
3. The Miners: Server Racks and Necessary Cooling
Current storage systems can use standard steel warehouse racking that can be put together with local labor. They are easy to install and can be mounted to the floor with concrete anchors. You will need to allow adequate space between the aisles to ensure that air flow is not inhibited, which could cause the equipment to overheat and fail.
4. Obsess Over Efficiency
Climate monitoring needs to be as smart-controlled as possible to adapt quickly to mining operations in flux. Since there is an extraordinary amount of electricity consumed in crypto mining, operators will need to re-evaluate how their power is sourced and what climate-friendly options may be available as the industry moves quickly toward more sustainable power sources.
5. Establish Long-term Relationships with Key Hardware Partners
Crypto mining hardware is constantly changing, and the rush to generate the maximum profits from this new industry will require solid relationships with hardware manufacturers. As of today’s writing, a single ASIC module price ranges from $7K to over $20K for professional units. You want your supplier of choice to keep you on the leading edge of tech, while also ensuring you are not investing in equipment that will be outdated before it can be profitable.
6. Constant Innovation is Critical
Crypto currency has only been around since 2009, but it is already estimated to be a $2 trillion dollar market. Though it has had wild swings in value, it appears interest in this decentralized currency will remain for years to come. To stay competitive, miners will have to innovate daily. Efficiency in every aspect of the warehouse operation will be essential to maintaining profitability in an industry with super tight margins.
Select the Right Crypto Mining Warehouse with Allied Steel Buildings
If you’re looking for the perfect crypto mining warehouse, look no further than Allied Steel Buildings. With over 50 years of experience in the steel building industry, we are one of the world’s most trusted builders. We partner with clients to solve the world’s most complex warehouse challenges and build legacies for generations to come. Contact us today for expert advice on your next project.