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Author Topic: [interest check] Group funded Co-location in ohio 0.02-059/kwh & petahash farm  (Read 2174 times)
Maidak (OP)
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August 19, 2014, 04:59:08 AM
Last edit: August 19, 2014, 07:05:02 AM by Maidak
 #1

So what this would essentially be if I see enough interest is I own 33 acres of land that i've debated on buildling a co-location on.

The intention of this group buy would be to construct a warehouse which estimated costs are between 20-30k

Utilize solar paneling which I have a close friend who does installs for commercial areas estimated 125k

To then host a minimum of 1 petahash SHA-256 hardware that is constantly upgraded by a snowball effect of reselling hardware and replacing.(0.6-0.9 per GHS)

The users who help fund the groupbuy would benefit by @ cost hosting for own personal equipment limited by how much was invested.

Also weekly or daily payouts by the group funded petahash farm. The rates for commercial are between 0.04-0.059/kwh if usitilizing wind and solar can bring this down to roughly 0.01-0.03/kwh

This would be a longer term investment plan as the solar paneling and wind turbines would estimate to pay for itself within 7 years. The webfront bitcoinminerz.com would serve as the shop to purchase in stock hardware available to be shipped out, as well as providing hosting options for users that would like to purchase hardware but not have to hassle with heat and increased electric bills.

In order for me to make something like this happen I would estimate between 250-500k USD needed I only called a few places to get rough quotes. I do see this as something that could really benefit everyone and wouldn't offer something like this if I wasn't confident in seeing it profitable.

The setup of this farm would be 100% transparent on all costs including employee costs, maintenance, advertising a more detailed plan would be set out if I see confidence in the community to help raise the capital to make this happen.

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August 19, 2014, 05:00:20 AM
 #2

reserved for any updates

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August 19, 2014, 05:06:34 AM
 #3

Count me in!
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August 19, 2014, 05:06:57 AM
 #4

Interesting looking proposition great power  prices.

Message me if you have any problems
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August 19, 2014, 05:12:24 AM
 #5

This is interesting. Power costs are almost a non factor under this model. Tuning in.


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August 19, 2014, 05:41:32 AM
 #6

What is the average wind speed per meter in your place?
The older models with horizontal axes need higher start up speed than the newer models with vertical axes.
The one with vertical axes are more expensive.
They are quite inexpensive in China, but the chipping costs to the rest of the world is more than those wind turbine cost.

Willing to partitipate if costs are lower than my own setup.

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August 19, 2014, 06:31:10 AM
 #7

What is the average wind speed per meter in your place?
The older models with horizontal axes need higher start up speed than the newer models with vertical axes.
The one with vertical axes are more expensive.
They are quite inexpensive in China, but the chipping costs to the rest of the world is more than those wind turbine cost.

Willing to partitipate if costs are lower than my own setup.

It would be located within north west ohio area. What I'd prefer to utilize is more solar paneling then wind turbines due to the amount of land I have available to do this with as well as a an associate who does solar panel installs professionally for a living and can cut me a good rate.


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August 19, 2014, 05:59:21 PM
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You need way more research and to come up with a business plan and cost analysis to see if this is even worthwhile to do.  You're picking numbers out of a hat and I don't think you've really determined if what you're attempting to do will even be profitable.

You might be better off just building a data center and hosting other people's miners and giving them a reduced electrical cost thanks to your Solar Panels.

Realistically though, solar panels in Ohio are not optimal (I live in the same State, near you) and we get a LOT of cloudy weather, not to mention... Snow.  So it's not a great idea.  And electricity here is not that expensive compared to most of the rest of the world.   (Though not all of it.)

You need to factor in cooling costs, and whether or not your local power company can deliver the kind of wattage you need to your location (Which sounds like a farm out in Medina or Elyria something).   Your property needs to be zoned for that kind of activity as well.

I wouldn't mind having access to a low cost data center near me.  But the margins on mining are very thin, and if you think you're going to spend half a million building this thing and then make that back through mining you're nuts.

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August 19, 2014, 06:13:57 PM
 #9

Transformers, power distribution, and wiring is going to cost more than the total of your current estimates.  It's not cheap to build a megawatt facility.
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August 19, 2014, 08:14:11 PM
 #10

Time is a key factor.  If funds were available how long until it was operational?  It could easily profit if done soon. 
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August 19, 2014, 08:16:46 PM
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I would be interested in investing, depending on the finer details once they are released. I am with others in that you have made it seem much easier than it will be.

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August 19, 2014, 08:22:22 PM
 #12

The OP obviously has no idea what he's talking about.


The electrical work alone is going to cost more than 150k with transformers and breakers and wiring.
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August 20, 2014, 02:02:20 AM
Last edit: August 20, 2014, 02:20:37 AM by Maidak
 #13

You need way more research and to come up with a business plan and cost analysis to see if this is even worthwhile to do.  You're picking numbers out of a hat and I don't think you've really determined if what you're attempting to do will even be profitable.

You might be better off just building a data center and hosting other people's miners and giving them a reduced electrical cost thanks to your Solar Panels.

Realistically though, solar panels in Ohio are not optimal (I live in the same State, near you) and we get a LOT of cloudy weather, not to mention... Snow.  So it's not a great idea.  And electricity here is not that expensive compared to most of the rest of the world.   (Though not all of it.)

You need to factor in cooling costs, and whether or not your local power company can deliver the kind of wattage you need to your location (Which sounds like a farm out in Medina or Elyria something).   Your property needs to be zoned for that kind of activity as well.

I wouldn't mind having access to a low cost data center near me.  But the margins on mining are very thin, and if you think you're going to spend half a million building this thing and then make that back through mining you're nuts.

I know what is needed to make it happen and I know solar paneling isn't the absolute BEST option for ohio but would work great if its a process that is gradually worked on throughout the year since electricity is fairly cheap where the property is its not a requirement right off the bat. I am going to assume since it is relativity close to an already up and running beryllium factory that the zoning shouldn't be much of an issue. Of course this would be part of that checklist prior to an actual group funding of this project.

I do completely understand the costs of it and what its going to run after transformers, cooling, wiring etc is all factored in. However i'm not going to go out and pull in all of this together before checking to see how many users would be interested in a offering like this. This is why I have it labeled as interest check and not a group buy where I am already collecting funds.

I would be interested in investing, depending on the finer details once they are released. I am with others in that you have made it seem much easier than it will be.

I'm well aware that it 'appears' as if I made this sound easy. That was the point was to make this easy for the users who helped invest towards this. I am aware of the work load the amount of time and man hours a project like this will need.

Transformers, power distribution, and wiring is going to cost more than the total of your current estimates.  It's not cheap to build a megawatt facility.

See above.

The OP obviously has no idea what he's talking about.


The electrical work alone is going to cost more than 150k with transformers and breakers and wiring.

I didn't state any where about transformer costs only what a rough estimate would be with a full-on solar panel installation.

So you are aware of my knowledge I have worked as a lineman in my past and acquired great deal of networking of electrical workers with 10-30 years + experience in this field a lot of whom are still close friends. I also just so happen to know one who runs a business for industrial and residential solar installations.

I ran quick numbers on a continuous load of 1.1 mwh/hr for the facility on 120 vac. With the air conditioning and other accessory load, and would need a minimum of a 1500 kva network transformer on the utility side to operate that load. I am also well aware its a major factor which is time consuming and costly.

Again this is why I am only looking at the community interest level, since this is not something I am able to just pull out of bank myself and get to building tomorrow. I'm not going to blindly collect money without first getting proper quotes and time frames. I don't mind constructive criticism and this is why I didn't self moderate this thread.

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August 20, 2014, 06:23:53 AM
 #14

Consider this:

electrical bildout cost is quite high on a MW facility, I would calculate fans + electrical work at atleast 0.3$/W.
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August 21, 2014, 10:27:25 PM
 #15

What are your cooling plans, particularly for the very short yet hot/humid summer?  Who owns the building(who pays the taxes, maint, etc)?  How will the business be structured?  Is MW size service available at your location?  Urban/Rural?  Volunteer or paid fire department?  Security concerns?  Insurance?  Credentials of the sys admin?

If you're looking for folks to build you a data center/pole barn... good luck.

If you're starting a collocation business, start small with a rented space to see and learn how this business operates.  ...and/or hire someone.

If you've got the know-how and the right business plan, I'm interested.  

Watching/subscribed.

edit: How are you getting .06/kwh? Industrial?  I'm not far from your region and I'm upwards of .12 for commercial.

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August 22, 2014, 04:31:02 AM
 #16

I am in Ohio...we have .06 delivered also.  I have 2 large buildings with .3 MW already installed...the issue is really finding gear at the right price to make it work.  The franchise stuff seems to be a waste of time...what gear would you be getting at a decent rate?

If you can get the gear we should work something out...I literally can be ready with .3 megawatts within 2 weeks...building and power are sitting idle.
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August 22, 2014, 02:41:08 PM
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I am in Ohio...we have .06 delivered also.  I have 2 large buildings with .3 MW already installed...the issue is really finding gear at the right price to make it work.  The franchise stuff seems to be a waste of time...what gear would you be getting at a decent rate?

If you can get the gear we should work something out...I literally can be ready with .3 megawatts within 2 weeks...building and power are sitting idle.

Send me a private message I'll be working on in the coming weeks is a better drawn out plan on how this will be profitable for users, proper estimates, and other miscellaneous expenses that will come along with a build like this. It seems a good majority of the long term veteran miners are interested in a project like this so from the looks of it I'll be moving forward with this.

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August 22, 2014, 02:55:52 PM
 #18

I am interested and watching the thread.  There are some questions I have and obviously the business plan needs some development.  But I am in the Kansas City area, which isn't that far, and could even help out when/if needed with boots on the ground.

The first thing I thought of is timeline.  Let's say a great business model is developed and funds are collected, what is an appropriate time frame to build the whole facility and start populating it?

With that kind of power draw, doing a franchising may be worth it.  Take a look at Bitfury's new model, seems to be a bit better than Friedcat's offer and could be lucrative.

You seem to have a better idea of what would be necessary to build this than I do, but I do work at a large engineering/construction firm who just acquired a solar company and I would be happy to ask some of the engineers on quotes of a project this size if you would like?

I would of course be interested as getting at cost power is what I need right now.  Would love to buy more machines, but am limited in space on where to put them, and asking on craigslist for people to run 1 or 2 miners in their homes for me for a fee is not very appealing to me.  So I am interested and will watch and comment as this project evolves.

Good Luck.

EDIT:  I am also wondering really what the plan is on this.  Will the investors own a piece of the business?  Will dividends be paid out on profits from other hosted gear or by investing are we just getting a place to get at cost power and don't actually own any part of it?

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August 22, 2014, 06:16:32 PM
 #19

PM me about this...

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August 23, 2014, 09:49:52 PM
 #20

You need way more research and to come up with a business plan and cost analysis to see if this is even worthwhile to do.  You're picking numbers out of a hat and I don't think you've really determined if what you're attempting to do will even be profitable.

You might be better off just building a data center and hosting other people's miners and giving them a reduced electrical cost thanks to your Solar Panels.

Realistically though, solar panels in Ohio are not optimal (I live in the same State, near you) and we get a LOT of cloudy weather, not to mention... Snow.  So it's not a great idea.  And electricity here is not that expensive compared to most of the rest of the world.   (Though not all of it.)

You need to factor in cooling costs, and whether or not your local power company can deliver the kind of wattage you need to your location (Which sounds like a farm out in Medina or Elyria something).   Your property needs to be zoned for that kind of activity as well.

I wouldn't mind having access to a low cost data center near me.  But the margins on mining are very thin, and if you think you're going to spend half a million building this thing and then make that back through mining you're nuts.

I know what is needed to make it happen and I know solar paneling isn't the absolute BEST option for ohio but would work great if its a process that is gradually worked on throughout the year since electricity is fairly cheap where the property is its not a requirement right off the bat. I am going to assume since it is relativity close to an already up and running beryllium factory that the zoning shouldn't be much of an issue. Of course this would be part of that checklist prior to an actual group funding of this project.

I do completely understand the costs of it and what its going to run after transformers, cooling, wiring etc is all factored in. However i'm not going to go out and pull in all of this together before checking to see how many users would be interested in a offering like this. This is why I have it labeled as interest check and not a group buy where I am already collecting funds.

I would be interested in investing, depending on the finer details once they are released. I am with others in that you have made it seem much easier than it will be.

I'm well aware that it 'appears' as if I made this sound easy. That was the point was to make this easy for the users who helped invest towards this. I am aware of the work load the amount of time and man hours a project like this will need.

Transformers, power distribution, and wiring is going to cost more than the total of your current estimates.  It's not cheap to build a megawatt facility.

See above.

The OP obviously has no idea what he's talking about.


The electrical work alone is going to cost more than 150k with transformers and breakers and wiring.

I didn't state any where about transformer costs only what a rough estimate would be with a full-on solar panel installation.

So you are aware of my knowledge I have worked as a lineman in my past and acquired great deal of networking of electrical workers with 10-30 years + experience in this field a lot of whom are still close friends. I also just so happen to know one who runs a business for industrial and residential solar installations.

I ran quick numbers on a continuous load of 1.1 mwh/hr for the facility on 120 vac. With the air conditioning and other accessory load, and would need a minimum of a 1500 kva network transformer on the utility side to operate that load. I am also well aware its a major factor which is time consuming and costly.

Again this is why I am only looking at the community interest level, since this is not something I am able to just pull out of bank myself and get to building tomorrow. I'm not going to blindly collect money without first getting proper quotes and time frames. I don't mind constructive criticism and this is why I didn't self moderate this thread.

Why in the world would you have it at 120 volt?  Do you own stock in a wire company?

I wish you luck, but your planning to have it be 120 volt shows you don't have much experience in this area.  If you are serious, please consult with someone (preferably several people) who has done this before.  You want to do this right the first time.  As others have said, start small.  Your learning lessons will cost much less.



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