Texas Pulls the Plug on New Data Centers—But Bitcoin Miners Already Plugged In

Bitcoin miners operating in Texas are unlikely to face material disruption from Governor Greg Abbott's directive to freeze new data center approvals on the state power grid, according to Bernstein analysts. Abbott on Monday ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to audit every data center project seeking to connect to the grid, with the duration of the review left unspecified. The move follows mounting public backlash over the rapid pace of data center construction across Texas, as reported by The Texas Tribune.

In a note to clients on Tuesday, Bernstein's research team, led by Gautam Chhugani, said most Bitcoin ($BTC) miners in the state operate under contracts for already-approved electric capacity, shielding them from the moratorium's immediate effects. "However, we believe, this audit throttles speculative data center pipeline and makes genuine sites with development history more valuable," the analysts wrote. "Bitcoin mining sites are favorably placed with the longest gestation, self-funding infra and local community management," they added.

The analysts flagged Cipher Digital ($CIFR), Core Scientific ($CORZ) and CleanSpark ($CLSK) as the miners most exposed to future public opposition, particularly during ERCOT's approval process to convert pipeline assets into grid-connected capacity. They said the moratorium and broader political opposition would make approved megawatts more valuable, highlighting the Texas operations of IREN ($IREN) and Riot Platforms ($RIOT) as fully grid-approved.

Separately, $CIFR reported second-quarter results earlier Tuesday, posting a loss of $0.65 per diluted share, widening from a loss of $0.12 per diluted share a year earlier. Shares of the miner were down more than 7% in Tuesday premarket trading, according to Yahoo Finance data.