Data centers in Nigeria?

[MiningChick]

Lately, I've been seeing all this buzz about data centers popping up in Nigeria because of those cheap electricity rates, it sounds like crypto mining dream, right?? But I'm kinda skeptical. Is the infrastructure actually solid? Or it's just a hype.

[TomPluz]

Nigeria is considered one of the top countries where people in big numbers are really interested with cryptocurrency though there seems be lack of appreciation from the government. And if this country can provider cheap electricity rates then I would not wonder if locators can be attracted to do within its geographical area. I am just hoping that the government will provide fair treatment to this sector aside from maybe giving off incentives so as to promote more business than can result into more employment and revenues. Now, how solid is Nigeria on infrastructure is something I am not qualified to analyze so let's see how these players will experience doing business in Nigeria.

[Stompix]

Lately, I've been seeing all this buzz about data centers popping up in Nigeria because of those cheap electricity rates, it sounds like crypto mining dream, right??

Start from here:
https://bitcointalk.org/index.php?topic=5475591.msg63225119#msg63225119
These are the guys that claim all over the place they are the leading bitcoin mining force in Nigeria.

Also, cheap, unreliable power is worse than expensive one, and taking into account that most US farms go for as low as 3cents/kwh it's really hard to even picture that much movement.

Datacenter by companies that need to have data stored there yes, absolutely, datacenters for mining, no don't think so.

[Cryptsafe]

Nigeria as a nation has lots of crypto enthusiasts well-known in the crypto industry but the only challenge facing crypto adoption in Nigeria is that the government has not really declared its stand on crypto hence the skepticism of Nigerian crypto enthusiasts to not be used as a scapegoat by the government just like it happened to the binance executives.

Concerning mining, the possibility of miners mining in a low key is inevitable so as to avoid government issues and they would for sure run a private electricity power supply to sustain their miners because of the pattern of power supply and its exorbitant charges for which the power supply is not constant. Some use solar while some use generator to power their miners and the cost of running such in Nigeria is very much expensive. This is the reason why people do not really put an interest in mining in some parts of  Nigeria.

[Zed0X]

I don't know, based on what I heard from conversations with people from Nigeria (and Kenya), it doesn't look like electricity there is not something to be proud of. I remember some chat saying certain official selling generators because they don't fix power outages.

[Faisal2202]

Lately, I've been seeing all this buzz about data centers popping up in Nigeria because of those cheap electricity rates, it sounds like crypto mining dream, right?? But I'm kinda skeptical. Is the infrastructure actually solid? Or it's just a hype.

I did not see a single post on this buzz maybe because I am not from there and you guys having discussion on your local boards, well, speaking of data centers they can't be used for crypto mining but to be a source or to store data like in terms of database, such data centres are not new because Nigeria have many already running.

It depends on the company because the infrastructure will be made by the investor who is interested to starting a data center there, even if the electricity is cheap there (don't know how cheap) but that can't be the only reason for a data center to move there, it just can't.

[Stompix]

I don't know, based on what I heard from conversations with people from Nigeria (and Kenya), it doesn't look like electricity there is not something to be proud of. I remember some chat saying certain official selling generators because they don't fix power outages.

Unless you steal the gas/diesel for those generators there is no way in hell you're going to break even mining with that as a soruc of energy.

I did not see a single post on this buzz maybe because I am not from there and you guys having discussion on your local boards, well, speaking of data centers they can't be used for crypto mining but to be a source or to store data like in terms of database, such data centres are not new because Nigeria have many already running.

A data center is a building to house computers, it doesn't have to store data, a telecom building that is in charge of communication flow is still a data center, there are multiple examples of datacenters that do not store a lot of data but they are used to develop or research stuff, and just like bitcoin mining their target is cmputations.
ASIC mining, AI training, networking, they are still called datacenters, far more accurate than calling them a farm.

[Stuart]

Lately, I've been seeing all this buzz about data centers popping up in Nigeria because of those cheap electricity rates, it sounds like crypto mining dream, right?? But I'm kinda skeptical. Is the infrastructure actually solid? Or it's just a hype.

It is just a hype. When it comes to mining, the very first thing that comes to mind is the power stability and availability. Imagine one who starts a mining and rely on the national power supply, you'll end up doing nothing, and if attention is given you, you'll pay exorbitant price for supply.

The only way to run mining in Nigeria, is by using solar systems, and a very large one, for sustainability.
Note: When that body becomes recognized publicly, expect a visit from the government, and at that point 2 things are involved

And mind you, electricity in Nigeria is never cheap.

[Faisal2202]

A data center is a building to house computers, it doesn't have to store data, a telecom building that is in charge of communication flow is still a data center, there are multiple examples of datacenters that do not store a lot of data but they are used to develop or research stuff, and just like bitcoin mining their target is cmputations.
ASIC mining, AI training, networking, they are still called datacenters, far more accurate than calling them a farm.

Got it ai you are saying this datacentar can be a asic mining farm. I knew about other examples you shared like the telecommunication, networking etc. but did not knew about Asic mining, that's new to me.

But I doubt if they are the same thing because the components, structure and purpose is totally different, so can we still call asic mining data centres?

[target]

Their government is not friendly to Bitcoin, it was all over the news years ago and although that was years ago I think they still are not friendly, they even ban binance.

If authorities find out there is a Bitcoin mining farm, they may likely seize the property and all its assets including the Bitcoins. That's the risk for diving into the business because of the low energy price.

[Bobcrypto]

I don't know, based on what I heard from conversations with people from Nigeria (and Kenya), it doesn't look like electricity there is not something to be proud of. I remember some chat saying certain official selling generators because they don't fix power outages.

Yeah, electricity has been a big challenge in Nigeria, there is no stable electricity supply and this will affect data centers except they plan to build alternative sources of electricity to achieve anything.
Electricity supply has been a big challenge in many African countries, and it something governments has to work on for a sustainable developments of the economy.

[omori]

Their government is not friendly to Bitcoin, it was all over the news years ago and although that was years ago I think they still are not friendly, they even ban binance.

If authorities find out there is a Bitcoin mining farm, they may likely seize the property and all its assets including the Bitcoins. That's the risk for diving into the business because of the low energy price.

High risk, high reward, basically.

But I do think the possibility of what you described is there. Govs don't like when the rules are broken, even if these rules are not beneficial to them.

[EmilTheBerg]

I don't know, based on what I heard from conversations with people from Nigeria (and Kenya), it doesn't look like electricity there is not something to be proud of. I remember some chat saying certain official selling generators because they don't fix power outages.

Yeah, electricity has been a big challenge in Nigeria, there is no stable electricity supply and this will affect data centers except they plan to build alternative sources of electricity to achieve anything.
Electricity supply has been a big challenge in many African countries, and it something governments has to work on for a sustainable developments of the economy.

I get how tough the electricity mess in Nigeria can be, it's a real headache. But I think there's a way around it. I'd put money into stuff like solar power and good backup systems to keep data centers humming along. With some smart planning and the right setup, I believe businesses can still do great. If the government steps up on energy fixes, I see it helping the whole country grow down the road.

[omori]

I don't know, based on what I heard from conversations with people from Nigeria (and Kenya), it doesn't look like electricity there is not something to be proud of. I remember some chat saying certain official selling generators because they don't fix power outages.

Yeah, electricity has been a big challenge in Nigeria, there is no stable electricity supply and this will affect data centers except they plan to build alternative sources of electricity to achieve anything.
Electricity supply has been a big challenge in many African countries, and it something governments has to work on for a sustainable developments of the economy.

I get how tough the electricity mess in Nigeria can be, it's a real headache. But I think there's a way around it. I'd put money into stuff like solar power and good backup systems to keep data centers humming along. With some smart planning and the right setup, I believe businesses can still do great. If the government steps up on energy fixes, I see it helping the whole country grow down the road.

If only the people high up would think about the prosperity overall, not about just filling up their pockets mostly.
Then your plan would work out.
But your intentions are still noble.

[joniboini]

If only the people high up would think about the prosperity overall, not about just filling up their pockets mostly.

Yeah, that applies to most governments IMO, especially in developing countries. Unless you give them enough share to fill their stomach, it's unlikely you can find major breakthrough in their rules, supports, etc. Even your local store probably needs some government support just because they don't want to deal with the hassle of being investigated every month due to "suspicious activities". I remember my friend told me about his experience working in a local retailer for construction and it felt terrible seeing corruption here and there.