Definition
A mining farm refers to a data center specifically equipped to mine cryptocurrencies. Mining farms have been developed due to the mining process becoming complicated and requiring more technical know-how, energy, and financial resources.
Understanding the term
A mining farm refers to a collection of many miners, often situated in a large data center or warehouse devoted exclusively to cryptocurrencies. It can consist of multiple ASIC machines or even a combination of GPUs and ASICs. They require enormous power sources and huge fans to cool the equipment. Since computers consume a lot of energy, air conditioning and other measures are required to prevent overheating.
Mining farms are suitable for geographical locations which have low temperatures. Creating and maintaining a mining farm is a costly affair. It not only uses large amounts of electricity, but the mining components also need to be replaced frequently. Substantial capital is thus required to start, expand, and maintain the mining farm to generate cryptocurrencies.
Takeaway
Mining farms allow the productivity of computers and the hash rate to be maximized. There are various ways to raise capital for a mining farm (ICOs being a common method).