Reports of a fire in a warehouse-style facility in Thailand have raised tough questions about the wisdom of hosting expensive bitcoin mining equipment in low-cost warehouse facilities, reports datacenterknowledge.com.

Reports on foreign press and social networks suggest the fire last month may have destroyed hundreds of bitcoin mining rigs, with estimates of their value running into the hundreds of thousands and even millions of dollars. The fire illustrates the risks of operating high-density computing gear in low-tech environments, and underscores the value of data centers that offer advanced electrical infrastructure and fire suppression systems.

The fire in a Bangkok suburb reportedly destroyed three buildings that housed Bitcoin mining hardware. The mining operation was using new rigs from Spondoolies Tech, an Israeli firm specializing in custom ASICs (Application Specific Integrated Circuits) for the Bitcoin market.

In postings on BitcoinTalk, officials from Spondoolies Tech said the cause of the fire is unknown, no one was hurt and that they believe the equipment was uninsured. The company said the “buildup was definitely not according to U.S. electric code.” Some commentators on social media speculated that electrical and network cabling may have been an issue, and photos of the facility show tangles of cabling.

The bitcoin network infrastructure is split between data centers and no-frills hashing centers featuring high-density hardware and low-reliability power infrastructure, often housed in former warehouses. Many bitcoin entrepreneurs focus on building high-powered infrastructure at the cheapest price point possible. As industrial mining operations scale up, they are optimized for rapid changes in hardware and economics.

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