Texas Data Center Pause May Not Affect BTC Miners Directly, Says Bernstein
Bernstein analysts believe that Texas-based Bitcoin miners will face limited direct disruption from a new state-level pause on certain data center approvals. The move, ordered by Governor Greg Abbott, centers on heightened scrutiny of how quickly new data center projects are being lined up to connect to Texas’ power grid.
The Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) will conduct an audit of data centers seeking to connect to the grid. Bernstein said many Texas miners are already covered by electric capacity agreements that have been approved, which could reduce near-term operational risk.
The analysts expect most Texas-based Bitcoin miners to be minimally affected because many are contracted for approved power capacity. The audit and moratorium are expected to slow or throttle speculative data center “pipeline” projects, potentially increasing the value of sites with development history.