Texas data center audit slows power supply, Bernstein: Existing Bitcoin miners and AI operators gain value

Mars Finance reports that on Monday, Texas Governor Greg Abbott ordered the Public Utility Commission of Texas (PUCT) and grid operator ERCOT to conduct an audit of all data center projects currently in the queue within the state. In response, ERCOT immediately paused the “Batch Zero” large-scale power approval process, which was scheduled to release results this month. Data center applications currently account for approximately 90% of ERCOT’s 474 GW interconnection queue. In a client report released on Tuesday, Bernstein analysts noted that this regulatory review will curb speculative development and reduce the supply of new power capacity, thereby increasing the scarcity value of already approved power capacity and benefiting existing Bitcoin mining companies and AI operators. The report specifically highlighted Cipher Digital (CIFR), CleanSpark (CLSK), and Core Scientific (CORZ) as being significantly impacted by the audit, as their recent expansion plans rely heavily on access to the Texas grid; Terawulf (WULF), with power assets distributed across multiple states including Kentucky, Maryland, and New York, has stronger risk resilience; and Riot Platforms (RIOT) and IREN are benefiting due to their existing large-scale approved operational assets within ERCOT.