US Curbs on New Data Centers May Give Bitcoin Miners With Power Access an Edge in AI

As efforts spread across the US to restrict new data center construction, Bitcoin miners that already have power-grid access and sites could gain an advantage in the AI infrastructure market, an analysis showed. Still, converting mining facilities for AI use requires major additional investment, and any real benefit will depend on conversion costs and power supply conditions.

Cointelegraph reported on November 11 that 40 of 41 local ballot measures related to data centers tracked by Ballotpedia in the US midterm election favored limits on development. The restrictions varied by locality, from bans on new construction to caps on large facilities, temporary moratoriums and requirements for resident approval.

As it becomes harder for new operators to secure infrastructure, existing miners' power contracts and facilities could become more competitive. Jamie Brown, chief executive officer of Global Kiwi Labs, said Bitcoin mining companies have more reason than ever to convert those power agreements and facilities for AI use if they have not already done so.

That shift is already well underway. Publicly listed mining companies signed more than $70 billion of AI and high-performance computing, or HPC, agreements from 2025 through early this year, according to CoinShares' first-quarter report.

But having power and land does not mean a mining site can be used immediately as an AI data center. CoinShares estimated the cost of building an AI data center at $8 million to $15 million per megawatt, far above the $700,000 to $1 million required for a mining facility. Jordan Knecht, head of strategic integration at Cresus, said significant additional investment is needed in cooling, networking and reliability infrastructure.

Power-use patterns also differ. Yuliya Barabash, founder of SBSB Fintech Lawyers, said Bitcoin mining can reduce electricity consumption when power prices rise, while AI data centers require a stable power supply. Electricity costs and regulatory burdens could therefore undermine profitability or delay project timelines.

Knecht said the new Congress may take a closer look at data centers' electricity costs, the strain they place on the grid and permitting procedures. Pressure could also build for large data center operators to absorb infrastructure costs themselves rather than pass them on to consumers, he added.