These reasons are why I am skeptical of companies like basic-mining, cognitive, or peta-hash. It will be very hard to maintain any sort of network percentage and prohibitively expensive to keep up with difficulty increases. Real money is in making machines, not mining with them.
This. There is a limited market IF the entity has an advantage over the retail consumer. Access to industrial space at below market prices? Signed a power agreement for interruptable supply at unbeatable rate <0.04 kWh? Operating in a climate that reduces the need for HVAC? Have a deal w/ manufaturer to buy initial and upgrade hardware at substantially (30%) less than retail?
Optimally it would be all of them combined. A person who has access to couple thousand feet of warehouse space in Canada in a district where with an interruptable contract can get power at $0.035 per kWh and is being offered rigs at $5 per GH/s for Dec delivery.