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I have been in the data center business for 20 years and there is another way to look at this as a business...
The power costs what the power costs where you are
The real estate costs what the real estate costs where you locate
Labor costs what the labor costs where you locate
Taxes cost what taxes cost where you locate
The infrastructure costs what the infrastructure costs where you locate - rigs, racks, cables, switches, routers
The question is how can you make money where you are? Can you?
There is consumption and there is cost of consumption. The way the data center world computes power is cost of power (.05)*hours per month (730)* Kw used (1000)= $36,500 per month in power to run a 1MW footprint of rigs or 416 rigs at 2.4Kw of draw each.
There are collateral costs for the cooling required to cool the density of the rigs - remember computers turn electricity into heat - and that adds a factor of .3 to .5 depending on the facility. This means that for every Kw of power used to run a rig, you'll need to consume .3 or .5 of a Kw to power the cooling infrastructure required to keep the wires and boards from burning or melting and to keep the rigs at an operating temperature range.
So the all in cost per MW of power will be $37,595 per month at a .3 cooling uplift. You still have the cost of rigs, racks, cables, switches, etc. to cover and rent for the physical space which on the low end would be $90/kw so figure another $90,000 plus taxes.
So the question is at what scale do you mine bitcoin to clear at least $150K/month?
The power costs what the power costs where you are
The real estate costs what the real estate costs where you locate
Labor costs what the labor costs where you locate
Taxes cost what taxes cost where you locate
The infrastructure costs what the infrastructure costs where you locate - rigs, racks, cables, switches, routers
The question is how can you make money where you are? Can you?
There is consumption and there is cost of consumption. The way the data center world computes power is cost of power (.05)*hours per month (730)* Kw used (1000)= $36,500 per month in power to run a 1MW footprint of rigs or 416 rigs at 2.4Kw of draw each.
There are collateral costs for the cooling required to cool the density of the rigs - remember computers turn electricity into heat - and that adds a factor of .3 to .5 depending on the facility. This means that for every Kw of power used to run a rig, you'll need to consume .3 or .5 of a Kw to power the cooling infrastructure required to keep the wires and boards from burning or melting and to keep the rigs at an operating temperature range.
So the all in cost per MW of power will be $37,595 per month at a .3 cooling uplift. You still have the cost of rigs, racks, cables, switches, etc. to cover and rent for the physical space which on the low end would be $90/kw so figure another $90,000 plus taxes.
So the question is at what scale do you mine bitcoin to clear at least $150K/month?
That's a great answer!
When seriously considering the future of the Bitcoin network, what you need to ask is "Does my utility bill get cheaper every year?", "Will operating costs consistently match the value of mined bitcoin?", "How long will it take for BTC value to recover when the block chain discovery gets halved again?" & "Can the network really handle millions of Transactions Per Second after all of the commercial miners are gone?"
