We need Mog's spare bedroom to stay in while we come up there to check out the facilities and see if things are real.
Also, how does Señor Customs Agent in Keflavik react to a padded box containing mining hardware? (As luggage, I'm thinking, but it could be by courier.)
Topic: Mining hosting @ $0.043 per KwH, 100% green energy - page 2. (Read 8634 times)
I'm already located in Iceland and know many of the owners of the DC's here as well as some of the smaller less well known ones. Right now I run my own batch #2 avalon here. Let me know if you'd like to collaborate.
Nice, you can do something like cex.io.... since cex.io KWH price is way higher then yours... you should be more profitable ...
At this point, IM not interested in offering such a service. Investment in mining equipment would be huge, full of risk and I dont believe it to be profitable. So either I would have to take a huge financial risk myself, or sell 'preorders" of something that I believe will be a net loss to my customers.
Once the network stabilizes at least somewhat and mining becomes more predictable, mining hardware more readily available, I may revise that, and offer hosted hardware (that is ready to hash in the datacenter), but certainly not right now.
Hi all,
Today, few among you will care about electricity price. Its only a tiny fraction of your mining investment and revenue, and your ROI is determined almost solely by when you receive your hardware. I dont think many people would be interested in shipping their beloved hardware far abroad right now, I guess many would rather sleep next to it
However, this will change. In 6 months or so, profit margins will dwindle and at some point, most of our revenue will be eaten up by electricity (and hosting) costs. Many among us who pay residential electricity prices will not be able to compete with large scale mining operations that get their electricity far cheaper. So, lets solve this
Im considering setting up a company to provide bitcoin collocation services in Iceland. Why Iceland?
- $0.043 per KwH for industrial contracts, guaranteed for up to 12 years.
- 100% green energy from hydro and geothermal power plants.
- attractive business climate, unlike most other countries that offer such low electricity cost (Iran, Venezuela, Kuwait,..).
- not too far from either the EU or US.
The plan currently is simple and consists of 2 phases. First phase is simply a group buy to rent rack space at an existing tier 3 or 4 datacenter in iceland.
I requested a few quotes, and what I got so far is substantially lower than the hosting that Cointerra advertises on their website.
Cointerra charges $2599 for 6 month hosting of a terraminer 4, or $433 per month.
What I got so far works out to about $200 per month, less than half Cointerra's price and competitive with many European domestic electricity rates alone.
Remember, this is for hosting in a tier 4 datacenter with all provisions, like UPS, diesel backup, multiple backbone connections, fancy access control, fire suppression, on site permanence etc. Price is based on the assumption the machine will use ~1400W and if we can get enough interest to fill at least 5 racks.
In a second phase, if our margins drop even further and $200 per month per 4U miner begins to hurt, assuming we can get enough miners to fill 20 or more racks, I am looking in to buying one or several modular datacenters (fancy word for a datacenter container) and putting them in Iceland. Something like this:
(And yes, I will be looking at asicminer's submersion cooling solution if/when it becomes available, although I have my doubts it will be economically more viable).
These systems would have their limitations, for instance I would likely not be providing UPS power and diesel backup, but at a later stage in the mining game, if our margins are that thin, I dont think those costs are warranted. If you only pay for the electricity you use, downtime would be "cheap" because our margins would be low anyway. I may reconsider that, but thats my current thinking. I cant give a reasonable price estimate for those containers yet, but obviously the idea is to be significantly below that of tier 3/4 datacenters. I suspect we may be able to cut that price by another 30-50%, but thats only a rough guess.
Before anyone asks, this wont become a bitcoin security that you can invest in, nor will it be a preorder scheme, if I decide to go ahead I will fund it myself, or at most accept private investors.
Time frame I have in mind, is to start renting the racks in spring 2014, meanwhile prepare everything for our own modular datacenter and depending on market conditions, likely implement that by summer/autumn 2014.
Right now, I would just like to hear from people if they are interested, and how many U you may want to rent and for what timeframes. Feel free to PM if you dont want this in public. IM also open to suggestions and criticism of the concept.
Today, few among you will care about electricity price. Its only a tiny fraction of your mining investment and revenue, and your ROI is determined almost solely by when you receive your hardware. I dont think many people would be interested in shipping their beloved hardware far abroad right now, I guess many would rather sleep next to it
However, this will change. In 6 months or so, profit margins will dwindle and at some point, most of our revenue will be eaten up by electricity (and hosting) costs. Many among us who pay residential electricity prices will not be able to compete with large scale mining operations that get their electricity far cheaper. So, lets solve this
Im considering setting up a company to provide bitcoin collocation services in Iceland. Why Iceland?
- $0.043 per KwH for industrial contracts, guaranteed for up to 12 years.
- 100% green energy from hydro and geothermal power plants.
- attractive business climate, unlike most other countries that offer such low electricity cost (Iran, Venezuela, Kuwait,..).
- not too far from either the EU or US.
The plan currently is simple and consists of 2 phases. First phase is simply a group buy to rent rack space at an existing tier 3 or 4 datacenter in iceland.
I requested a few quotes, and what I got so far is substantially lower than the hosting that Cointerra advertises on their website.
Cointerra charges $2599 for 6 month hosting of a terraminer 4, or $433 per month.
What I got so far works out to about $200 per month, less than half Cointerra's price and competitive with many European domestic electricity rates alone.
Remember, this is for hosting in a tier 4 datacenter with all provisions, like UPS, diesel backup, multiple backbone connections, fancy access control, fire suppression, on site permanence etc. Price is based on the assumption the machine will use ~1400W and if we can get enough interest to fill at least 5 racks.
In a second phase, if our margins drop even further and $200 per month per 4U miner begins to hurt, assuming we can get enough miners to fill 20 or more racks, I am looking in to buying one or several modular datacenters (fancy word for a datacenter container) and putting them in Iceland. Something like this:
(And yes, I will be looking at asicminer's submersion cooling solution if/when it becomes available, although I have my doubts it will be economically more viable).
These systems would have their limitations, for instance I would likely not be providing UPS power and diesel backup, but at a later stage in the mining game, if our margins are that thin, I dont think those costs are warranted. If you only pay for the electricity you use, downtime would be "cheap" because our margins would be low anyway. I may reconsider that, but thats my current thinking. I cant give a reasonable price estimate for those containers yet, but obviously the idea is to be significantly below that of tier 3/4 datacenters. I suspect we may be able to cut that price by another 30-50%, but thats only a rough guess.
Before anyone asks, this wont become a bitcoin security that you can invest in, nor will it be a preorder scheme, if I decide to go ahead I will fund it myself, or at most accept private investors.
Time frame I have in mind, is to start renting the racks in spring 2014, meanwhile prepare everything for our own modular datacenter and depending on market conditions, likely implement that by summer/autumn 2014.
Right now, I would just like to hear from people if they are interested, and how many U you may want to rent and for what timeframes. Feel free to PM if you dont want this in public. IM also open to suggestions and criticism of the concept.
Nice, you can do something like cex.io.... since cex.io KWH price is way higher then yours... you should be more profitable ...
Nice idea, I'll be following this up
I like it. It's sound cool. 
Sounds pretty cool. So are you talking about cloud mining, or having people send their miners to you to run?
I'm pretty sure the second, so you'll have to build up some trust before people are willing to let their miners go.
I'm pretty sure the second, so you'll have to build up some trust before people are willing to let their miners go.
People would send their own miners there. They wouldnt even have to trust me, they would be sending their hardware straight to the datacenter. For payment Im sure we can work something out with escrow/multsig and the DC is open to using bitpay.
Its just that they dont like to be bothered with dozens of individual customers ordering 4U at the time, hence an organized group buy. Once they are in Iceland, its also a lot easier to move them to another premise.
(btw, iceland is a small island. You are not going to run very far with a container full of stolen hardware).
Sounds pretty cool. So are you talking about cloud mining, or having people send their miners to you to run?
I'm pretty sure the second, so you'll have to build up some trust before people are willing to let their miners go.
I'm pretty sure the second, so you'll have to build up some trust before people are willing to let their miners go.
List of rack units of potentially interested miners:
- 6x 4U CT anonymous via PM
- 2x 4U CT anonymous via PM
Total: 8U
- 6x 4U CT anonymous via PM
- 2x 4U CT anonymous via PM
Total: 8U
Hi all,
Today, few among you will care about electricity price. Its only a tiny fraction of your mining investment and revenue, and your ROI is determined almost solely by when you receive your hardware. I dont think many people would be interested in shipping their beloved hardware far abroad right now, I guess many would rather sleep next to it
However, this will change. In 6 months or so, profit margins will dwindle and at some point, most of our revenue will be eaten up by electricity (and hosting) costs. Many among us who pay residential electricity prices will not be able to compete with large scale mining operations that get their electricity far cheaper. So, lets solve this
Im considering setting up a company to provide bitcoin collocation services in Iceland. Why Iceland?
- $0.043 per KwH for industrial contracts, guaranteed for up to 12 years.
- 100% green energy from hydro and geothermal power plants.
- attractive business climate, unlike most other countries that offer such low electricity cost (Iran, Venezuela, Kuwait,..).
- not too far from either the EU or US.
The plan currently is simple and consists of 2 phases. First phase is simply a group buy to rent rack space at an existing tier 3 or 4 datacenter in iceland.
I requested a few quotes, and what I got so far is substantially lower than the hosting that Cointerra advertises on their website.
Cointerra charges $2599 for 6 month hosting of a terraminer 4, or $433 per month.
What I got so far works out to about $200 per month, less than half Cointerra's price and competitive with many European domestic electricity rates alone.
Remember, this is for hosting in a tier 4 datacenter with all provisions, like UPS, diesel backup, multiple backbone connections, fancy access control, fire suppression, on site permanence etc. Price is based on the assumption the machine will use ~1400W and if we can get enough interest to fill at least 5 racks.
In a second phase, if our margins drop even further and $200 per month per 4U miner begins to hurt, assuming we can get enough miners to fill 20 or more racks, I am looking in to buying one or several modular datacenters (fancy word for a datacenter container) and putting them in Iceland. Something like this:
(And yes, I will be looking at asicminer's submersion cooling solution if/when it becomes available, although I have my doubts it will be economically more viable).
These systems would have their limitations, for instance I would likely not be providing UPS power and diesel backup, but at a later stage in the mining game, if our margins are that thin, I dont think those costs are warranted. If you only pay for the electricity you use, downtime would be "cheap" because our margins would be low anyway. I may reconsider that, but thats my current thinking. I cant give a reasonable price estimate for those containers yet, but obviously the idea is to be significantly below that of tier 3/4 datacenters. I suspect we may be able to cut that price by another 30-50%, but thats only a rough guess.
Before anyone asks, this wont become a bitcoin security that you can invest in, nor will it be a preorder scheme, if I decide to go ahead I will fund it myself, or at most accept private investors.
Time frame I have in mind, is to start renting the racks in spring 2014, meanwhile prepare everything for our own modular datacenter and depending on market conditions, likely implement that by summer/autumn 2014.
Right now, I would just like to hear from people if they are interested, and how many U you may want to rent and for what timeframes. Feel free to PM if you dont want this in public. IM also open to suggestions and criticism of the concept.
Today, few among you will care about electricity price. Its only a tiny fraction of your mining investment and revenue, and your ROI is determined almost solely by when you receive your hardware. I dont think many people would be interested in shipping their beloved hardware far abroad right now, I guess many would rather sleep next to it
However, this will change. In 6 months or so, profit margins will dwindle and at some point, most of our revenue will be eaten up by electricity (and hosting) costs. Many among us who pay residential electricity prices will not be able to compete with large scale mining operations that get their electricity far cheaper. So, lets solve this
Im considering setting up a company to provide bitcoin collocation services in Iceland. Why Iceland?
- $0.043 per KwH for industrial contracts, guaranteed for up to 12 years.
- 100% green energy from hydro and geothermal power plants.
- attractive business climate, unlike most other countries that offer such low electricity cost (Iran, Venezuela, Kuwait,..).
- not too far from either the EU or US.
The plan currently is simple and consists of 2 phases. First phase is simply a group buy to rent rack space at an existing tier 3 or 4 datacenter in iceland.
I requested a few quotes, and what I got so far is substantially lower than the hosting that Cointerra advertises on their website.
Cointerra charges $2599 for 6 month hosting of a terraminer 4, or $433 per month.
What I got so far works out to about $200 per month, less than half Cointerra's price and competitive with many European domestic electricity rates alone.
Remember, this is for hosting in a tier 4 datacenter with all provisions, like UPS, diesel backup, multiple backbone connections, fancy access control, fire suppression, on site permanence etc. Price is based on the assumption the machine will use ~1400W and if we can get enough interest to fill at least 5 racks.
In a second phase, if our margins drop even further and $200 per month per 4U miner begins to hurt, assuming we can get enough miners to fill 20 or more racks, I am looking in to buying one or several modular datacenters (fancy word for a datacenter container) and putting them in Iceland. Something like this:
(And yes, I will be looking at asicminer's submersion cooling solution if/when it becomes available, although I have my doubts it will be economically more viable).
These systems would have their limitations, for instance I would likely not be providing UPS power and diesel backup, but at a later stage in the mining game, if our margins are that thin, I dont think those costs are warranted. If you only pay for the electricity you use, downtime would be "cheap" because our margins would be low anyway. I may reconsider that, but thats my current thinking. I cant give a reasonable price estimate for those containers yet, but obviously the idea is to be significantly below that of tier 3/4 datacenters. I suspect we may be able to cut that price by another 30-50%, but thats only a rough guess.
Before anyone asks, this wont become a bitcoin security that you can invest in, nor will it be a preorder scheme, if I decide to go ahead I will fund it myself, or at most accept private investors.
Time frame I have in mind, is to start renting the racks in spring 2014, meanwhile prepare everything for our own modular datacenter and depending on market conditions, likely implement that by summer/autumn 2014.
Right now, I would just like to hear from people if they are interested, and how many U you may want to rent and for what timeframes. Feel free to PM if you dont want this in public. IM also open to suggestions and criticism of the concept.
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