Maybe they should push into rural part of china, where hydra power can be cheaper.
Not only this, but well connected people willing to share some of the income or hashrate with their "friends" are known to get much better deals.
In China even "no cost" deals are not unheard of (i.e. they run a few MW of hardware in the unused electricity portion of "private" power generators, often in remote areas).
There have been mining operations apparently piggybacking on this "free" electricity as well, they run tons of Antminer S7s for "free," but some do get busted. I saw a story about this online but I forgot where. It's true, some people will share hashrate with another person or factory and use their electricity at a reduced price. All this to make some money... Once Bitfury 16nm chips come out, antminer s7 prices will take a nosedive as people replace their old s7s and avalons for the newest thing. Watch out, and sell your miners early for you don't want to lose your investment!