Bitcoin miners with energy already secured may have an edge within the race to construct AI knowledge facilities after voters in a number of US communities backed limits on new improvement. The midterms may additionally deliver nearer scrutiny from Congress over who pays for the grid upgrades these amenities want, business specialists advised Cointelegraph.
Voters in a number of states weighed in on knowledge heart improvement throughout the Nov. 3 US midterms, when native measures appeared on the identical ballots as congressional races. Amid issues about rising electrical energy prices, water use and the affect on close by communities, voters favored limiting improvement in 40 of the 41 native contests tracked by Ballotpedia.
The restrictions embrace citywide bans, limits on bigger amenities, momentary pauses on new tasks and voter approval necessities for some developments.
The outcomes come as main Bitcoin mining firms proceed shifting into AI, a transition Jamie Brown, CEO of Global Kiwi Labs, mentioned may change into extra engaging as native restrictions make it tougher to construct new knowledge facilities.
“If a Bitcoin miner has not yet repurposed their electric contract and physical plant to AI, the case to do so just got more compelling,” mentioned Brown, whose firm hosts servers for crypto exchanges and buying and selling corporations.
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Local restrictions make enlargement tougher
Miners’ shift to AI infrastructure is already underway, with publicly listed Bitcoin miners saying greater than $70 billion in AI and superior computing contracts throughout 2025 and early 2026, in line with a first-quarter report by CoinShares.
But state and native selections can have a extra fast affect on whether or not knowledge heart tasks transfer ahead. That’s as a result of native authorities usually oversee zoning and constructing permits and might affect entry to electrical energy.
“A company might have access to an attractive site and a significant amount of power capacity, but if local restrictions prevent it from expanding or upgrading that infrastructure, the opportunity becomes much more difficult to pursue,” mentioned Jordan Knecht, head of strategic integrations at Kresus, a blockchain infrastructure firm.
Last week, voters backed 27 measures to restrict or oppose new knowledge facilities within the elections, in line with Ballotpedia. These included 5 full bans, 12 partial bans and six-month pauses on new tasks in three Maine cities.
In Grove City, Ohio, voters accepted a rule requiring public approval for big tasks that use greater than 20 megawatts of electrical energy, amongst different circumstances.
“Federal policy will certainly influence the broader investment environment, but the practical ability to develop and operate these facilities often comes down to conditions in individual markets,” Knecht advised Cointelegraph. “For miners looking to transition into AI, I think understanding those local dynamics will be just as important as following developments in Washington.”
Expanding into AI just isn’t that straightforward
Building AI-ready knowledge heart infrastructure can price between $8 million and $15 million per megawatt, in contrast with $700,000 to $1 million per megawatt for conventional mining amenities, in line with a 2026 report by CoinShares.
That hole helps clarify why a web site with energy already secured is barely a place to begin for miners shifting into AI. “Transitioning from Bitcoin mining to AI workloads requires significant additional investment in infrastructure for cooling, networking, and reliability,” Knecht mentioned.
Yuliya Barabash, founding father of SBSB Fintech Lawyers, additionally pointed to variations in electrical energy wants between Bitcoin mining and AI knowledge facilities. Bitcoin miners can usually scale back electrical energy use when costs rise, whereas AI knowledge facilities usually want a constant energy provide, she mentioned.
“Higher electricity prices and additional regulatory requirements could make some projects less profitable or delay their implementation,” Barabash advised Cointelegraph.
This comes as electrical energy demand from US knowledge facilities can be anticipated to rise, in line with the International Energy Agency (IEA). The company estimates that knowledge facilities used 224 terawatt-hours of electrical energy in 2025, a determine projected to almost double to 426 terawatt-hours by 2030.
The affect of Congressional adjustments
One query dealing with the incoming Democratic-controlled Congress is who ought to pay to increase the grid for big knowledge facilities.
Knecht mentioned lawmakers may take a more in-depth take a look at how these tasks have an effect on electrical energy prices and the way they get accepted. “There may be more pressure to ensure that large data center operators are paying their fair share of infrastructure costs rather than passing those expenses on to consumers.”
Barabash additionally expects scrutiny of who pays for the electrical energy infrastructure wanted to assist knowledge facilities. “One of the key priorities is likely to be ensuring that technology companies, rather than ordinary consumers, bear the costs of the additional electricity infrastructure their facilities require,” she mentioned.
Still, specialists famous that nearer consideration doesn’t essentially imply Congress will discourage knowledge heart improvement. “AI infrastructure is becoming increasingly important to the US economy, and there is still a strong incentive to support investment in domestic computing capacity,” Knecht mentioned.
For miners weighing a conversion, the query is whether or not AI income can justify the price of upgrading cooling, networking and energy methods. Brown thinks it might probably. “Miners will swap to AI because it is a better ROI than mining,” he mentioned.
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Content Source: cointelegraph.com
