Investment firm Bernstein has highlighted that Bitcoin miners and AI infrastructure companies in Texas with already secured power capacity could see their valuations rise, following Governor Greg Abbott's order to audit all new data center grid interconnection projects. The move comes as the Electric Reliability Council of Texas (ERCOT) reports an overwhelming 474 gigawatts of interconnection requests, with roughly 90% coming from data centers—more than five times the grid's peak demand.
Texas has temporarily halted new data center connections to the grid, requiring developers to disclose electricity and water demands, noise mitigation, lighting controls, tax incentive use, and ownership details. This regulatory shift is expected to increase the scarcity value of approved megawatts, making existing power agreements a critical competitive advantage. Companies that have already navigated the complex permitting process stand to benefit from higher returns per megawatt and reduced competition from speculative projects.
Bernstein issued outperform ratings on Cipher Mining (CIFR), CleanSpark (CLSK), Core Scientific (CORZ), IREN (IREN), Riot Platforms (RIOT), and TeraWulf (WULF), indicating confidence that their secured energy resources position them well for the evolving landscape. MARA Holdings (MARA) received a market-perform rating, reflecting a more neutral outlook. The audits signal a more cautious state approach to large-scale energy consumers, potentially slowing expansion but creating a more stable environment for established operators.
