Dell Now Providing Bitcoin Mining Data Center Services

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Dell Now Providing Bitcoin Mining Data Center Services

Dell has found a creative way to deal with excess capacity at one of its Quincy, Washington, data centers; now, it is providing Bitcoin mining data center services for Bitcoin miners. This is kind of new for the companies that end up with more data center space than they need, sometimes following a change in strategy, sometimes after an IT refresh.

The decision by Dell to help some other companies as well with spare data center space as they too can now start providing Bitcoin mining data center services for interested parties. According to the sources from Dell, it has struck a deal with a Seattle-based provider of collocation space for Bitcoin mining servers who will offer space in Dell’s Quincy facility to its customers.

Nonetheless, Bitcoin is not new for Dell as the company started accepting the digital currency as payment for products it sells through its website in June. However, the latest decision to host some of the infrastructure that makes up the cryptocurrency mining network is definitely a movement towards Bitcoin.

The decision on the part of Dell was not unexpected as it was appearing that a lot of companies were trying to optimize the idle potential in their data centers. Many of the companies have also started hosting Bitcoin mining rigs. However, typical collocation companies cannot offer the kind of deals Bitcoin miners are looking for.

The Three-Year Deal Will Help Bitcoin ASIC Hosting Expand its Operations

This is for a reason, for instance, they usually need high power densities and short-term contracts, and most of them are not willing to pay premium for reliability, which is a big part of a data center provider’s margin. However, the agreement with Bitcoin ASIC has a three-year deal which is a pretty long time.

The three-year reseller deal with Bitcoin ASIC Hosting, which been operating its own data center in central Washington for about three years will further enhance its capabilities as the existing facility is fairly small and almost full. On the other hand, Dell’s Quincy data center has about 5 megawatts of redundant power, but the company is only using 1 megawatt.

According to some observers the three-year deal between the two companies is an unusual both from a data center provider standpoint and from the Bitcoin end user’s perspective. Dell made sure that it offers attractive deal to Bitcoin ASIC in terms of duration and even agreed to offer extremely short-term contracts down to three months.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com