In crypto mining, Data Centers are custom facilities that house large-scale installations of cryptocurrency mining operations.
These data centers are normally designed to efficiently run mechanical, electrical, and plumbing systems associated with crypto mining operations.
The more computers and servers a data center holds, the more hash power the data center has to utilize for mining.
The computers and servers work to solve the cryptographic problems presented by various blockchains, with the first computer to find the solution rewarded for doing so with miner fees.
The explosion in cryptocurrency mining has led to increased demand for mining facilities.
Data centers are popping up across the globe with giant server farms, requiring massive amounts of electricity to run, and specialized cooling equipment need to keep the crypto mining equipment running at peak performance.
Environmental sustainability is a primary concern in the cryptocurrency mining ecosystem, as governments are becoming more sensitive to the industrial scale and massive power consumption used to keep a crypto data center in business.
China, a leader in crypto mining throughout much of bitcoin’s (BTC) existence, has approached the situation of sustainability with focus.
Chinese mining operations were outright banned in the country throughout much of 2021, dropping to 0% market share for a time. The government said the ban was primarily due to their concern about crypto mining’s impact on the environment and people using cryptocurrencies for fraud and money laundering.
Yet even with the ban that is still in place in 2022, mining operations have started operating again, in a covert manner it seems. The world market share of bitcoin (BTC) mining operations is back up to 22%.
Large data centers used for crypto mining are located in Reykjavik, Iceland, Moscow, Russia, Washington, USA, Linthal, Switzerland, and Amsterdam, the Netherlands.