Texas Data Center Moratorium Won't Hit Most BTC Miners

Texas Governor Greg Abbott has ordered a moratorium on approval of new data center projects connected to the state's grid operator, ERCOT. The move is aimed at addressing concerns about the rapid growth of data centers in Texas, which have faced public backlash.

Bernstein analysts say that Bitcoin miners operating in Texas are unlikely to be impacted by the moratorium because most of them have already secured approved electric capacity under contract. This means they can continue their operations without interruption.

However, Bernstein notes that the audit could make it more difficult for new data centers to connect to the grid, which may affect companies with speculative projects or those that are still in development.

The analysts also point out that local operations of certain Bitcoin miners, such as Cipher Digital (CIFR), Core Scientific (CORZ), and CleanSpark (CLSK), could be exposed to future public opposition to data center expansion. They highlight the approved MWs as becoming more valuable due to the moratorium.