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Hostels:

Opal Cave Bedrock (08 8672 5028):
Hutchinson Street
This is underground hostel is very basic. It consists of a centre walkway, and on either side are 4-bed alcoves. If you like your privacy don't stay here as none of these alcoves have doors - a curtain is all that seperates you from anybody else staying here. The toilet facilities are good and clean, if a little bit too far from the beds, but the kitchen is very basic. Beds in alcoves of 4 cost $15 per night

Joe's Backpackers (08 8672 5163):
Oliver Street
Another underground hostel. If also a little basic, you should definitely stay in an underground hostel during your stay in Coober Pedy. Beds in dorms of up to 10 people will set you back $16 a night

 
It can very dark underground here
Inside the underground mines