[PRE-ANN] Building an ASIC Hosting Center with Management (In United States)

[Dalkore]

Community,

Hope we are all doing well.   I am posting to test initial interest in a project I might "green light".


ASIC Hosting Center Details:

I have the opportunity to purchase a building from a friend in the Midwest.   It is an old Multi-story FreeMasons lodge that is over 4,000 sqft.  Brick construction from the 1890s, very quality construction.  I has highspeed internet available and cheap power (5.5/kwh).   A friend I have known for over a decade lives near by and is willing to relocate to the center and live onsite so I will have security and a person that can do simple tasks like maintain the A/C, check cable connections and manually power cycle the units if my remote access fails.  Their is a local security company I can get alarm service and I am going to work with a local IT shop in case I need onsite networking support.  The build has been maintained and the roof is in good shape with not water leaks (I would build a cage inside with a cover for redundancy)

I would do a similar ASIC mining manager setup and my initial goal is to get 20-30 units committed but it could handle a 100 or more with current power available. 


Please give me some feedback if this would be interesting or PM directly.


Thanks,
Dalkore

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[DrG]

If I didn't have cheap power I would definitely consider this.  The only issue is that most people currently won't commit to moving their ASICs since 4 days downtime for shipping is like $1000 USD.  I assume this is for long term maintenance once the hashrate gets high.  Shipping a unit to Seattle might be more than the power savings of a month of usage (depending on location).  The real benefit would be not having to maintain the operational status of the units.

I'll be visiting in-laws in Seattle in May, we should meet up lol

[zif33rs]

Nitpick #1    use spell check.  there(their?)

other thoughts...

Lets go thru all the trouble to develop and support a decentralized currency and now that we have it up and running lets centralize it in big data centers!

[Dalkore]

Nitpick #1    use spell check.  there(their?)

other thoughts...

Lets go thru all the trouble to develop and support a decentralized currency and now that we have it up and running lets centralize it in big data centers!

I understand your position. 

I am just letting people know, I have the ability, resources, technical expertise and want to do this service.   Some people may not want the constant responsibility to make sure these boxes to maximum up time.  This would not be a big data center, it would be a small independent operation in a small town off the grid (almost).  It might appeal to others.   This is why I am asking.  It was presented to me last night and I am actually intrigued. 

D

[johnyj]

Interested, what about pricing? BFL provide such service at $25/month for a single SC

[k9quaint]

And where would you get your ASICs from?

[Vagnavs]

 sounds interesting.  If you decide to go ahead with plan.  Just let me know..

[Dargo]

Well, I don't have any need for hosting of my non-existent ASICs at the moment, but Dalkore is someone I judge to be trustworthy. I'd be a little worried about on-site security though - the temptation to steal a bunch of ASICs would be pretty high.

[Dalkore]

I think one of the large problems you are going to have is after you file for a business license, they are going to inspect you.   The fire department is going to come once a year (and within the first months you are open).  They are going to see these things they do not understand and look for the stickers (that they do understand).   No stickers are going to exist.   Then you will have a problem.    Unless, you do it underground like BFL seems to (flying fast and loose with the sales tax laws, the interstate commerce laws and the municipal laws).

No problems here, this is the normal process of setting up hosting & management.

[Dalkore]

Interested, what about pricing? BFL provide such service at $25/month for a single SC

No comment.    I provide a high value management service for my clients.

[Dalkore]

sounds interesting.  If you decide to go ahead with plan.  Just let me know..

PM me with your email address.  I have some things in the works right now.

[Dalkore]

Well, I don't have any need for hosting of my non-existent ASICs at the moment, but Dalkore is someone I judge to be trustworthy. I'd be a little worried about on-site security though - the temptation to steal a bunch of ASICs would be pretty high.

On-site security will be provided.   You are correct on this point and insurance is another option I am exploring.

[Entropy-uc]

You also have to consider tax implications.

A foreign person hosting hardware in the United States will owe US tax on the income generated by the hardware.

[Dalkore]

If you want to have a tax discussion then please start a topic under "Legal".   Thank you.

[Rampion]

I think this could be a very demanded service if mining really spreads as I hope it will spread - well thought Dalkore

[minternj]

You going to have the following?
- reedudant internet connections with diverse paths?
- halon fire suppression
- environmental controls
- deisel power generator

all this is supplied when use a server collocation service.

[13Charlie]

You going to have the following?
- reedudant internet connections with diverse paths?
- halon fire suppression
- environmental controls
- deisel power generator

all this is supplied when use a server collocation service.

These are all super critical, however. You can't expect a startup to have everything in place on day one.
What you may expect is that he invest profits from the first few months into this new equipment.

Ideally he would lure in his first 10 customers with discounted prices, buy tht new stuff and then charge everyone the new price.

[Vagnavs]

sounds interesting.  If you decide to go ahead with plan.  Just let me know..

PM me with your email address.  I have some things in the works right now.

 sent a PM hopefully you received it with my email address.  If not just let me know.
Thanks

[minternj]

You going to have the following?
- reedudant internet connections with diverse paths?
- halon fire suppression
- environmental controls
- deisel power generator

all this is supplied when use a server collocation service.

These are all super critical, however. You can't expect a startup to have everything in place on day one.
What you may expect is that he invest profits from the first few months into this new equipment.

Ideally he would lure in his first 10 customers with discounted prices, buy tht new stuff and then charge everyone the new price.

Oh ok, this is sort of an informal hosting. Get it , was thinking he was trying to become a collocation datacenter type business.

[DPoS]

This makes no sense.. more like the wandering mind of a limo driver

Why would you bother with all this just to host ASIC miners?  Why not open a full fledge datacenter? Unless you are going to have a lot of 'minor miner downtime' while you mine for yourself...

Also.. having a dude crash at the place is not 'security'

I think you would not register this buidling at all as a business and act like it is just your extended basement hobby to anyone asking.. i work in datacenters, you do not know one thing on setting climate control environment

everyone lie with bitcoins

[Dalkore]

You going to have the following?
- reedudant internet connections with diverse paths?
- halon fire suppression
- environmental controls
- deisel power generator

all this is supplied when use a server collocation service.

Internet - In my current location I have that and this would be something I agree with.
Fire - Looking into this.   
Environmental Controls - Yes, it is a sealed room with air conditioning.
Generator - Have a generator.   Also if power was out for an extended period, I have two backup locations under agreement, would only suffer 4-12 hours of downtime

[Dalkore]

This makes no sense.. more like the wandering mind of a limo driver

Why would you bother with all this just to host ASIC miners?  Why not open a full fledge datacenter? Unless you are going to have a lot of 'minor miner downtime' while you mine for yourself...

Also.. having a dude crash at the place is not 'security'

I think you would not register this buidling at all as a business and act like it is just your extended basement hobby to anyone asking.. i work in datacenters, you do not know one thing on setting climate control environment

everyone lie with bitcoins

Your entertaining.  You "think" and you "assume" are the keys words from a junior stranger that knows very little about me.  Sounds like qualified opinion...

[Phinnaeus Gage]

I'm not trying to be a dick, Dalkore, but having a friend oversee an operation in the Midwest while you live in Seattle doesn't make any sense.

Location:   Seattle, Washington USA

I'm sure there's a myriad of buildings available on the cheap where you're located.

[allinvain]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

[Dalkore]

I'm not trying to be a dick, Dalkore, but a friend oversee an operation in the Midwest while you live in Seattle doesn't make any sense.

Location:   Seattle, Washington USA

I'm sure there's a myriad of buildings available on the cheap where you're located.

Having someone dependable is key.    If you set up your infrastructure right with the right people, it could be anywhere.   The midwest location was an idea and I am still acquiring the property.   Cheap maybe different for us, this is a sweetheart deal.

[Dalkore]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

It does but if u go real cheap, it is remote.   

[mrb]

It has highspeed internet available and cheap power (5.5/kwh).

Not cheap enough. Douglas County, WA has power at half this rate ($0.0233/kWh): http://www.douglaspud.org/Service/Schedule1GeneralService.aspx
Megabidpower.com is already building a DC there, and will sell power at $0.04/kWh: http://megabigpower.com/

[Phinnaeus Gage]

I'm not trying to be a dick, Dalkore, but a friend oversee an operation in the Midwest while you live in Seattle doesn't make any sense.

Location:   Seattle, Washington USA

I'm sure there's a myriad of buildings available on the cheap where you're located.

Having someone dependable is key.    If you set up your infrastructure right with the right people, it could be anywhere.   The midwest location was an idea and I am still acquiring the property.   Cheap maybe different for us, this is a sweetheart deal.

So, it's safe to assume you're picking up the property regardless? I'm in Sandwich, IL, and not asking exactly where the building is located, but approximately how far do you think it's away from my location? Which direction is not important either. Only asking cause I'm curious and wanted to increase my post count before I hit the hay and dream about (insert farm animal(s) here).

[DrG]

I'm not trying to be a dick, Dalkore, but a friend oversee an operation in the Midwest while you live in Seattle doesn't make any sense.

Location:   Seattle, Washington USA

I'm sure there's a myriad of buildings available on the cheap where you're located.

Having someone dependable is key.    If you set up your infrastructure right with the right people, it could be anywhere.   The midwest location was an idea and I am still acquiring the property.   Cheap maybe different for us, this is a sweetheart deal.

So, it's safe to assume you're picking up the property regardless? I'm in Sandwich, IL, and not asking exactly where the building is located, but approximately how far do you think it's away from my location? Which direction is not important either. Only asking cause I'm curious and wanted to increase my post count before I hit the hay and dream about (insert farm animal(s) here).

I don't think you should be dreaming about inserting things into farm animals. 

[allinvain]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

It does but if u go real cheap, it is remote.   

I see. Yeah we wouldn't want some bears chewing on our ASIC miners. So what is the average Kw/H cost in your area?

[dani]

I would be interested, but I dont think im in for the short term. When asics will be widely available thats when I will contact you on this. But until then you won't have anymore space, I guess

[Dalkore]

It has highspeed internet available and cheap power (5.5/kwh).

Not cheap enough. Douglas County, WA has power at half this rate ($0.0233/kWh): http://www.douglaspud.org/Service/Schedule1GeneralService.aspx
Megabidpower.com is already building a DC there, and will sell power at $0.04/kWh: http://megabigpower.com/

Please take this debate about the cheapest power somewhere else, thanks.   Yes, I have actually been to Douglas county when I was GPU mining.  

[Dalkore]

I'm not trying to be a dick, Dalkore, but a friend oversee an operation in the Midwest while you live in Seattle doesn't make any sense.

Location:   Seattle, Washington USA

I'm sure there's a myriad of buildings available on the cheap where you're located.

Having someone dependable is key.    If you set up your infrastructure right with the right people, it could be anywhere.   The midwest location was an idea and I am still acquiring the property.   Cheap maybe different for us, this is a sweetheart deal.

So, it's safe to assume you're picking up the property regardless? I'm in Sandwich, IL, and not asking exactly where the building is located, but approximately how far do you think it's away from my location? Which direction is not important either. Only asking cause I'm curious and wanted to increase my post count before I hit the hay and dream about (insert farm animal(s) here).

The location will not be disclosed publicly for many reasons.

[Dalkore]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

It does but if u go real cheap, it is remote.  

I see. Yeah we wouldn't want some bears chewing on our ASIC miners. So what is the average Kw/H cost in your area?

I currently get .10 kw/h, once another office opens in my building, that will be .00 kw/h   Once you get outside of Seattle, it gets even cheaper than that, down to .02 near dams.

[allinvain]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

It does but if u go real cheap, it is remote.  

I see. Yeah we wouldn't want some bears chewing on our ASIC miners. So what is the average Kw/H cost in your area?

I currently get .10 kw/h, once another office opens in my building, that will be .00 kw/h   Once you get outside of Seattle, it gets even cheaper than that, down to .02 near dams.

I'm currently on 0.07 so for now I wouldn't be interested but 0.02 is really good and no doubt once the network is dominated by ASIC miners then kw/h rate will become very important. Maybe then I shall give you a shout if you still have room. Good luck!

[Dalkore]

Doesn't Washingston State have cheaper power anyways? I mean all those rivers and hydro dams gotta be good for something.

It does but if u go real cheap, it is remote.  

I see. Yeah we wouldn't want some bears chewing on our ASIC miners. So what is the average Kw/H cost in your area?

I currently get .10 kw/h, once another office opens in my building, that will be .00 kw/h   Once you get outside of Seattle, it gets even cheaper than that, down to .02 near dams.

I'm currently on 0.07 so for now I wouldn't be interested but 0.02 is really good and no doubt once the network is dominated by ASIC miners then kw/h rate will become very important. Maybe then I shall give you a shout if you still have room. Good luck!

Please do keep me in mind.   Don't just look at the power, but also the management of the miners, technical support, security and environmental controls, I offer all those as well.  Cheers!

[mrb]

It has highspeed internet available and cheap power (5.5/kwh).

Not cheap enough. Douglas County, WA has power at half this rate ($0.0233/kWh): http://www.douglaspud.org/Service/Schedule1GeneralService.aspx
Megabidpower.com is already building a DC there, and will sell power at $0.04/kWh: http://megabigpower.com/

Please take this debate about the cheapest power somewhere else, thanks.   Yes, I have actually been to Douglas county when I was GPU mining.  

This is not a debate. You asked for feedback. I gave you feedback.

I was expecting an answer where you would explain why power cost does not seem important enough to make it the #1 priority...

[Dalkore]

It has highspeed internet available and cheap power (5.5/kwh).

Not cheap enough. Douglas County, WA has power at half this rate ($0.0233/kWh): http://www.douglaspud.org/Service/Schedule1GeneralService.aspx
Megabidpower.com is already building a DC there, and will sell power at $0.04/kWh: http://megabigpower.com/

Please take this debate about the cheapest power somewhere else, thanks.   Yes, I have actually been to Douglas county when I was GPU mining.  

This is not a debate. You asked for feedback. I gave you feedback.

I was expecting an answer where you would explain why power cost does not seem important enough to make it the #1 priority...

As time goes on and difficulty increases, it becomes more important.   With cheaper power, other costs go up so it is better not to bring on additional costs until they are needed.   #1 priority is technical support and constant internet connection right now.   It is over 200 miles east from Seattle over the mountain pass.  Many areas only have one ILEC for internet and sometimes no cable internet so getting redundancy can be problematic.  If we go the T1 route then that adds additional cost.   You need to figure in onsite technical support if our remote link fails or I would need to drive 4 hours to get onsite.  Getting enough clients would allow everyone to only have to burden a small piece of the costs.   

With that said, I have had some additional demand so I am actually crunching numbers to see when it will make sense to go that route.  Currently I have a two hosting location in Seattle and with the reduced costs in other areas, allows it to make sense keeping it close by at this stage. 

Sorry about calling it a debate, your question is valid and I hope to enlightens you a little more into my plan at this point, in the end, yes I am working on a transition long term into some of the cheapest power in the United States if not anywhere period.

D

[StringTheory]

Just installed another 30 tons of cooling and 200 amps of capacity