Large-scale miners are the dominant players in Bitcoin (BTC<\/a>) mining \u2014 we should know because we are one. Having scaled up from a set of mining rigs in my dorm room, our team at Genesis Digital Assets has grown to over twenty industrial-scale mining farms across the globe in just eight years. Every quarter, we continue to scale and build more.<\/p>\n You may think that because mining happens digitally, you can plant a farm anywhere in the world. And while you can mine Bitcoin from anywhere, having on-the-ground operations takes more thought than just setting up shop wherever you like. Whether you\u2019re looking to start your own farm or scouting out farms to invest in, location is going to be the make-or-break factor of your mining operations.<\/p>\n Because it\u2019s such a new industry and there\u2019s no handbook for scaling Bitcoin mining operations, we\u2019ve learned as we\u2019ve gone, experienced every issue that could arise and worked hard to solve it. We\u2019ve essentially been writing the handbook of how to build successful large-scale mining operations \u2014 I\u2019ll share some of that insight with you. Here are four major factors to think about when you consider your new mining farm\u2019s location.<\/p>\n Related: <\/em><\/strong>7 lessons learned from building and scaling Bitcoin mining operations<\/em><\/strong><\/a><\/p>\n Because mining operations need fast and powerful mining rigs to solve algorithms quickly, powering the hardware is the most expensive part of a mining operation. Operations that think they\u2019re going strong can get undercut on high electricity prices very easily. So, when it comes to choosing a location, operations need to not only know what electricity options are the cheapest but which modes of electricity are available in that locale.<\/p>\n Bitcoin mining consumes<\/a> a lot of electricity energy \u2014 around 110 terawatt hours per year which is about the electrical energy consumption of a small country. A single ASIC miner runs just over 3000 watts, which is the equivalent of running an AC unit, a dryer or a space heater. Considering that Bitcoin mining farms are running hundreds or thousands of miners all day and night, it\u2019s easy to see how electricity costs can get out of control. The last thing you want to do is set up shop only to find out that you\u2019ll never be profitable because of an outrageous electricity bill.<\/p>\n You may find cheap electricity, but is it sustainable? The good news is that green energy sources like wind, solar and hydropower are all cheaper sources than gas and coal. A 2019 report found<\/a> that \u201c56% of all newly commissioned utility-scale renewable power generation capacity provided electricity at a lower cost than the cheapest new fossil fuel-fired option.\u201d<\/p>\n But, while sustainable energy is the cheapest option when it comes to cost, miners haven\u2019t all been using sustainable energy. As more people invest in and become aware of Bitcoin and what mining is, more questions are arising around its use of sustainable energy \u2014 especially after Elon Musk\u2019s tweets brought it to the forefront<\/a>.<\/p>\n Related: <\/em><\/strong>No, Musk, don\u2019t blame Bitcoin for dirty energy \u2014 The problem lies deeper<\/em><\/strong><\/a><\/p>\n The argument that all Bitcoin miners are greedily and uncaringly using fossil fuels is unfounded. ARK Invest and the Cambridge Center for Alternative Finance have found<\/a> that 76% of miners are actively using sustainable energy sources as part of their mining operations. Additionally, the industry as a whole is pushing to adopt more sustainable ways to operate from committing to reducing their emissions through the new Crypto Climate Accord to using their own data center\u2019s excess heat to power local greenhouses, farms and towns.<\/p>\n Another question around choosing a location: Will they let me mine here? If they do let me mine here, is the political attitude towards mining such that overnight, they could change their mind and shut down mining operations altogether?<\/p>\n This has recently happened in China, where the Chinese government announced they would begin to crack down on Bitcoin mining<\/a> and trading behavior. By June 20, local authorities shut down Bitcoin mining operations<\/a> across the Sichuan Province and now it\u2019s expected that 90% of mining operations will be shut down completely or forced out of the country. Additionally, Iran has recently banned Bitcoin mining<\/a> in the wake of recent power outages. So, it\u2019s best not to build a mining farm where you\u2019ll suddenly be forced to shut it down.<\/p>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/0b05468b-6591-4696-a86e-9c37666c88ad.png\")
<\/figure>\nFactor 1: Electricity rates<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/b134ba79-fbd1-4b66-9660-9c22709e6275.png\")
<\/figure>\nFactor 2: Availability of green energy <\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/df5965fe-c0c2-41ef-a85f-23cd73887c9f.png\")
<\/figure>\nFactor 3: Mining-friendly regions <\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/9e77ea70-1e06-423f-82ec-e84035a069d5.png\")
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