Bitcoin miners with energy already secured could have an edge within the race to construct AI data facilities after voters in a number of US communities backed limits on new improvement. The midterms could additionally carry nearer scrutiny from Congress over who pays for the grid upgrades these amenities want, business consultants advised Cointelegraph.
Voters in a number of states weighed in on data center 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, short-term pauses on new initiatives and voter approval necessities for some developments.
The outcomes come as main Bitcoin mining corporations proceed transferring into AI, a transition Jamie Brown, CEO of World Kiwi Labs, mentioned could turn out to be extra engaging as native restrictions make it more durable to construct new data facilities.
“If a Bitcoin miner has not but repurposed their electrical contract and bodily plant to AI, the case to take action simply bought extra compelling,” mentioned Brown, whose firm hosts servers for crypto exchanges and buying and selling companies.
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Native restrictions make growth more durable
Miners’ shift to AI infrastructure is already underway, with publicly listed Bitcoin miners asserting greater than $70 billion in AI and superior computing contracts throughout 2025 and early 2026, in line with a first-quarter report by CoinShares.
However state and native selections can have a extra rapid affect on whether or not data center initiatives transfer ahead. That’s as a result of native authorities typically oversee zoning and constructing permits and might affect entry to electrical energy.
“An organization may need entry to a pretty website and a major quantity of energy capability, but when native restrictions forestall it from increasing or upgrading that infrastructure, the chance turns into far more tough to pursue,” mentioned Jordan Knecht, head of strategic integrations at Kresus, a blockchain infrastructure firm.
Final week, voters backed 27 measures to restrict or oppose new data facilities within the elections, in line with Ballotpedia. These included 5 full bans, 12 partial bans and six-month pauses on new initiatives in three Maine cities.
In Grove Metropolis, Ohio, voters authorised a rule requiring public approval for big initiatives that use greater than 20 megawatts of electrical energy, amongst different situations.
“Federal coverage will definitely affect the broader funding atmosphere, however the sensible capability to develop and function these amenities typically comes right down to situations in particular person markets,” Knecht advised Cointelegraph. “For miners seeking to transition into AI, I believe understanding these native dynamics shall be simply as necessary as following developments in Washington.”
Increasing into AI isn’t that straightforward
Constructing AI-ready data center 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 website with energy already secured is barely a place to begin for miners transferring into AI. “Transitioning from Bitcoin mining to AI workloads requires important further funding in infrastructure for cooling, networking, and reliability,” Knecht mentioned.
Yuliya Barabash, founding father of SBSB Fintech Legal professionals, additionally pointed to variations in electrical energy wants between Bitcoin mining and AI data facilities. Bitcoin miners can typically cut back electrical energy use when costs rise, whereas AI data facilities usually want a constant energy provide, she mentioned.
“Greater electrical energy costs and extra regulatory necessities could make some initiatives much less worthwhile or delay their implementation,” Barabash advised Cointelegraph.
This comes as electrical energy demand from US data facilities can also be anticipated to rise, in line with the Worldwide Vitality Company (IEA). The company estimates that data 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 broaden the grid for big data facilities.
Knecht mentioned lawmakers could take a better take a look at how these initiatives have an effect on electrical energy prices and the way they get authorised. “There could also be extra stress to make sure that massive data center operators are paying their fair proportion of infrastructure prices moderately than passing these bills on to shoppers.”
Barabash additionally expects scrutiny of who pays for the electrical energy infrastructure wanted to help data facilities. “One of many key priorities is more likely to be guaranteeing that know-how corporations, moderately than strange shoppers, bear the prices of the extra electrical energy infrastructure their amenities require,” she mentioned.
Nonetheless, consultants famous that nearer consideration doesn’t essentially imply Congress will discourage data center improvement. “AI infrastructure is changing into more and more necessary to the US financial system, and there may be nonetheless a robust incentive to help funding in home computing capability,” 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 could possibly. “Miners will swap to AI as a result of it’s a higher ROI than mining,” he mentioned.
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