Texas data center audit slows power supply, Bernstein says; Bitcoin miners and AI operators benefit.

According to The Block, Texas Governor Greg Abbott ordered the Public Utility Commission of Texas (PUCT) and grid operator ERCOT on Monday to conduct an audit of all data center projects currently in the queue within the state. In response, ERCOT suspended its “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 suppress speculative development and constrain 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. In contrast, Terawulf (WULF) has stronger risk resilience due to its power assets distributed across multiple states including Kentucky, Maryland, and New York. Riot Platforms (RIOT) and IREN are expected to benefit due to their existing large-scale approved operational assets within ERCOT.