When Cryptocurreny is traded, computers scattered across the globe race to complete a computation that creates a 64 digit hexadecimal number for that particular bitcoin. This number is then placed on a public ledger so anyone can confirm the transactions for that bitcoin. The computer that completes the computation first gets rewarded with 6.2 bitcoin, or about $225,000 based on current prices.
This, in a nutshell, is the crypto mining industry. It’s a race to be first. With such large computations that need to be completed, and quickly, the amount of power and processing speed needed to win is ever increasing. Graphic cards on crypto rigs don’t get days off. They run 24 hours a day, 7 days a week.
Having a successful crypto mining operation requires having a solid understanding of the amount of power you have available for your rigs and ensuring that your power costs don’t become too big of an overhead. In this article, we’ll review how to convert and calculate power for your crypto miners so that you can get a sense of what your monthly costs would be.
Converting Kilowatts (kW) and Watts (W)
A kilowatt (kW) is a standard measurement of power for any electrical device. Most of the time we measure our electronics in watts (W). However, when you go over a certain number of watts it’s easier to use kilowatts. Because a kilowatt is equal to 1,000 watts you can simply say that it is 1 kilowatt or 1 kW. To calculate kW and W simply divide or multiply by 1,000.
2 kW = 2,000 W (2 kW x 1,000 = 2,000 W)
2,000 W = 2 kW (2,000 W / 1,000 = 2 kW)
Converting kilowatts and Megawatts (MW)
Megawatts, kilowatts and watts are all divisible by 1,000. A megawatt is equal to 1,000 kilowatts and 1,000,000 watts. Here’s how it works. To get the number of megawatts from kilowatts you will want to divide by 1,000 just like in the examples above. To get the number of kilowatts from megawatts you will want to multiply by 1,000.
2 MW = 2,000 kW (2 MW x 1,000 = 2,000 kW)
2,000 kW = 2 MW (2,000 kW / 1,000 = 2 MW)
2 MW = 2,000,000 W (2 MW x 1,000,000 = 2,000,000 W)
2,000,000 W = 2 MW (2,000,000 W / 1,000,000 = 2 MW)
Calculating kilowatt Hours (kWh)
As you can see, it’s easy to go back and forth from kilowatts to watts. But what about kilowatt hours (kWh)? Kilowatt hours is a little more complex because it involves both power and time. There are several factors to consider but follow these steps to get your kWh.
- Find the wattage on your mining rig
- Multiply wattage by hours used each day. (24 hours)
- Divide by 1,000 (watts to kilowatts)
- Multiply by number of days (30 days)
Bitmain Antminer S9 Example
- 1,323 Watts
- 1,323 Watts x 24 Hours = 31,752
- 31,752 / 1,000 = 31.752 kWh per day
- 31.752 kWh per day x 30 days = 952.56 kWh per month
Monthly Cost of Electricity (kWh x Per/ kWh)
To calculate this, you will have to get your cost per kWh from the utility company or from your last statement. It can be hard to figure out the actual cost per kWh because of tiers, fees, taxes and so forth. It may be helpful to contact your utility company to get a better idea of the cost per kWh.
Simply multiply your kWh figure from above with your cost per kWh from your utility company.
Example: .0678 cents per kWh
- 952.56 kWh per month
- 952.56 kWh per month x .0678 cents per kWh = $64.58
It will cost you approximately 64.58 cents per Bitmain Antminer S9 in electricity at a cost of .0678 cents per kWh.
Monthly Price Per kW to Price Per Mining Rig
Another common question is what does the kilowatt cost per month equal per mining rig? To calculate this, you will simply get the cost per kW from the datacenter or mining farm. Typically, prices range from $80-$140 per kW per month. This includes the space, power, internet, cooling and security.
You will want to get your cost per kW per month. Next, you will want to calculate your total power demand. This should include your load factor of 80% if you are in the United States. This is a requirement among most data centers and mining farms anyway. For safety, it should also apply to at home use and commercial buildings.
- Determine total power demand in watts
- Multiply total power demand in watts x load factor (80% or 1.2)
- Convert watts (W) to kilowatts (kW)
- Multiply your total power demand including load factor x price per kW / month
Example: $85 per kW / Month, 80% Load Factor, 100 Bitmain Antminer S9s
- 100 x 1,323 Watts = 132,300 Watts
- 132,300 Watts x 1.2 = 158,760 Watts
- 158,760 Watts / 1,000 = 158.76 Kilowatts (kW)
- 158.76 kW x $85 = $13,494.60 per month
In the example above, it will cost you $13,494 per month to host 100 Bitmain Antminer S9s at $85 per kW with power requirement of 1,323 watts per mining rig. This includes the load factor which adds an additional 20% power demand to your power requirements.
It’s important to note that the reason for the load factor is that the breakers and wires cannot take a continuous load. It’s like redlining the engine of your car for too long.
Speak with the Experts
At Datacenters.com, our provider agnostic approach allows us to partner with hundreds of different data center operators, offering the widest selection of solutions possible. As a result of this, we’re uniquely positioned to know which hosting providers are accommodating of bitcoin miners and which aren’t. As most miners know firsthand, not every data center is willing to allocate the space and power necessary to operate a successful mining operation.
Datacenters.com is the leading technology platform, directory, and online marketplace for data center solutions. Our portfolio consists of 340+ providers with 2,900+ facilities in 85 countries, allowing users to search, compare, and contact industry leading solution providers with the click of a button.
Our team of expert advisors are available to guide you along the path – free of charge. Schedule time today to speak with our team so they can connect you with providers eager to win your business. Datacenters.com are the experts in crypto hosting solutions. Contact us today to find out why.