Dell has entered an agreement with Seattle-based Bitcoin ASIC Hosting to provide colocation space for bitcoin mining servers at its Western Technology Center in Quincy, Washington.

Bitcoin is a cryptocurrency introduced in 2009 which enables payments over the internet without the involvement of banks and credit card issuers. Unlike the US dollar, Euro or Yen, no nation is backing Bitcoin. Creating or 'mining' the cryptocurrency requires servers to run all-out 24X7, demanding considerable power and often coming at a high cost.

Moving in the miners
Dell’s Western Technology Center is a 40,000 sq ft, Tier III facility with 10.8MW of power available. By leasing space at the Center, Bitcoin ASIC Hosting said it avoided high-cost power and was able to gain redundant connectivity, cooling and backup emergency power. Dell’s facility utilizes green electricity from hydroelectric dams on the nearby Columbia River, meaning it can significantly cut its electricity costs.

Bitcoin ASIC Hosting co-founder Allen Oh said the company’s customers cannot afford to be offline for a long period of time so it was looking for a colo provider to move its operations quickly and efficiently.

“We got our racks and servers moved and online in less than ten days, with less than 12 hours of downtime,” Oh said.

In July, Dell began accepting Bitcoin payments on its website through a partnership with the US-based Bitcoin exchange platform Coinbase in a bid to give its customers more flexibility and to offer reduced payment processing costs.