This is the third feature in our three-part series on the growing data center market for Bitcoin mining. Read the first one about a new breed of colocation for Bitcoin infrastructure or the second one about the tough economics of being a data center provider for customers in the Bitcoin mining business.
Bitcoin mining operations are expected to spend at least $600 million to deploy infrastructure in the second half of 2014 to process transactions using the fast-growing cryptocurrency.
That investment will continue into 2015, according to a panel featuring some of the largest players in Bitcoin mining at Friday’s CoinSummit conference in London. A significant portion of that spending will benefit data center providers with clients in the cryptocurrency game.
Projections of future spending are often optimistic. But these experts say their projections are, like much of the Bitcoin world, based on the math.
“It comes down to the financial incentives,” said Dave Carlson, founder of MegaBigPower, a large Bitcoin operation in Washington state. “Over the next two years there will be 2.6 million Bitcoin mined.”
