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Is the Southeast Ready for Blockchain Data Centers?

Jun 4, 2018
by Josh Anderson

NORTH CHARLESTON, SC — Blockchain data centers are pushing the envelope, and that means that they’re setting new standards. At CapRE’s Southeast Data Center Spring 2018 Update, we invited Allan Williamson, Principal of At Home Crypto LLC and Nathan Porter, Partner at Cryptos Managed to offer insight into what blockchain and crypto-currencies will mean for future data center design, construction, and development. After asking a wealth of questions, they closed the discussion by taking a question from the audience  — are regional operators positioned well for the crypto-currency mining wave? Porter volunteered to tackle this one.

“One of the other things that I do is that I’m actually a policy advisor for one of the Secretary of State candidates in the State of Georgia. This is partly because I want to make sure that regulations are put in place that make sense and that actually help the industry grow, vs. what could be detrimental regulations that could actually shut the industry down,” he began. “So I take that into consideration because recently, the Attorney General here in the State of South Carolina decided to take action against Genesis Mining.”

Porter then shared that Genesis Mining is a cloud mining company located in Iceland. “You can buy a contract that says, Hey I want to, you know, mine at two terra-hashes, or whatever the case may be. And you pay a certain amount of money for that, and you get the rewards minus maintenance. That’s how cloud mining works,” he explained.

“The Attorney General in South Carolina has decided to declare that that’s a security,” he revealed. “I don’t know how. It makes zero sense that they could actually justify that, but that’s what they’ve done. And so they’ve issued a cease-and-desist order to Genesis. I bring that up because I don’t know that the region, from a legal standpoint, is necessarily ready to accept or have different mining operations and data centers built around bitcoin in the area. Now that’s you, re-selling the mining operations to someone else, so if you’re doing it yourself in-house, maybe it’s not the exact same thing, since you’re not issuing a security supposedly, but it’s something that you need to be aware of.”

data center summit“The other thing that you want to think of as far as regional goes, is these machines are extremely hot,” he concluded. “And a lot of the largest mining operations tend to be in areas that have a lot cooler climates. Iceland is a big area right now for crypto-mining operations, and it’s purely because the geographic area is better-suited for the entire environment. That’s not to say that it can’t occur here, but there is going to be that handicap that aren’t necessarily in other regions of the world.”

Check out previous CapRE Insider Reports covering earlier remarks by Porter and Williamson:

 

CAPRE’s Southeast Data Center Summit Spring Update was held on March 28, 2018 at Embassy Suites in North Charleston, SC. Above: Nathan Porter, Partner, Cryptos Managed and Allan Williamson, Principal, At Home Crypto LLC.
Nathan Porter, Partner, Cryptos Managed and Allan Williamson, Principal, At Home Crypto LLC in North Charleston, SC at CAPRE’s Southeast Data Center Summit Spring Update, March 28, 2018
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