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Intel-Owned Computing Complex Sold to Bitcoin Mining Firm for $13 Million

Intel-Owned Computing Complex Sold to Bitcoin Mining Firm for $13 Million

Reading Time: 2 minutes by on June 26, 2018 Altcoins, Bitcoin, Blockchain, Business, Mining, News, Tech
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The Bitcoin mining sector is soon developing into an industry of its own, with some regions favored over others due to optimal mining conditions.

Mining Centers in Great Demand

According to a report on The Gazette, 3G Venture II, a California mining company,  purchased an Intel-owned chipmaking complex for $13 million on June 21, 2018, presumably to develop the space into a full-fledged mining center.

Michael Palmer, a salesman who conducted the property deal, stated city authorities are aware of John Chen, the owner of 3G Venture II, and his plans to launch a mining facility.

The mining business demands a great amount of electricity and cooling systems to ensure the sophisticated mining rigs do not catch fire. Hence, a cool climate and cheap electricity are requisites for a profitable mining setup.

The now-purchased plant, spanning a mammoth 1.4 million-square-foot, was opened by Intel in 2000 to produce semiconductors for its devices. However, the chipmaker abandoned the unit after years of slowdown in the business, eventually deciding to sell the asset.

For Chen, the facility provided ample electricity, due to the grid provided to Intel, and the mountainous region ensured cool year-round temperature to make his purchase decision worthwhile. In addition, the property features an on-site substation and two separate power feeds.

Electricity rates in Colorado Springs are lower than many American cities as part of the government’s push to developer industry in the region.  Reportedly, the cheap power forms a major part of the region’s marketing to foreign businesses.

The cheaper power has attracted data centres – no different than mining operations in terms of power usage, server systems, and other computing equipment – owned by the likes of FedEx, Progressive Insurance, and Walmart.

City May not See More Mining Operations

Dirk Draper, president and CEO of the Colorado Springs Chamber of Commerce & EDC, stated the mining center was devoid of any financial incentives offered to Chen, adding the group did not particularly solicit such a business.  

Draped continued:

“While bitcoin mining will use large amounts of power and pump up revenues for Springs Utilities, and Chen’s 3G Venture is likely to make a significant investment on machinery and equipment, the Chamber & EDC doesn’t plan to pursue more such operations.”

Draper noted unlike data centers, bitcoin mining organizations do not add many jobs to the region, and the Chambers’ ultimate objective is to increase employment in the region.

“While it is beneficial for some segments of the community to have the large base power users, said Draper, “we understand that and are supportive of it, our focus is more on the employment side.”

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