SKN | US Data Center Restrictions Could Strengthen Bitcoin Miners’ Position in AI Market

Key Points

• Voters in 40 of 41 local contests tracked by Ballotpedia favored measures limiting new data center development, potentially making existing power access more valuable.

• Bitcoin mining companies could benefit from existing electricity contracts and infrastructure as they transition toward AI and advanced computing services.

• Higher conversion costs, continuous electricity requirements and potential congressional scrutiny over grid expenses remain significant challenges.

Local Restrictions Could Benefit Existing Mining Facilities

Bitcoin mining companies with secured electricity access could gain an advantage in the expanding artificial intelligence infrastructure market as communities across the United States push back against new data center developments.

During the November 3 midterm elections, voters considered local measures addressing data center construction amid concerns about electricity costs, water consumption and the impact on surrounding communities. According to Ballotpedia, voters favored restrictions in 40 of the 41 local contests tracked.

The measures included complete bans, partial development restrictions, temporary pauses on construction and requirements for public approval of certain projects.

The results could create additional opportunities for Bitcoin miners that already operate energy-intensive facilities. As local authorities make new developments more difficult to approve, companies with existing sites, electricity contracts and power capacity may have an advantage over businesses starting from scratch.

Jamie Brown, CEO of Global Kiwi Labs, said the political environment could strengthen the financial case for miners considering a transition to AI infrastructure. He argued that companies that have not yet repurposed their electricity contracts and physical facilities for AI workloads may now have greater incentives to do so.

AI Expansion Faces Local Regulatory Barriers

The transition from Bitcoin mining to AI computing is already underway. Publicly listed Bitcoin mining companies announced more than $70 billion in AI and advanced computing contracts during 2025 and early 2026, according to CoinShares’ first-quarter report.

However, access to electricity and physical infrastructure does not automatically guarantee that projects can expand.

Local authorities frequently control zoning decisions, building permits and other requirements that determine whether data center developments can proceed.

Jordan Knecht, head of strategic integrations at blockchain infrastructure company Kresus, said companies could face difficulties expanding even when they have access to suitable sites and significant electricity capacity.

Recent local decisions illustrate the challenge. Voters approved 27 measures to limit or oppose new data centers, including five complete bans and 12 partial bans. Three towns in Maine also approved six-month pauses on new projects.

In Grove City, Ohio, voters supported a requirement for public approval of large facilities using more than 20 megawatts of electricity, alongside additional conditions.

For Bitcoin miners seeking to enter AI infrastructure, understanding local regulatory requirements could therefore become as important as monitoring federal policy.

High Conversion Costs Remain a Major Challenge

Despite the potential advantages of existing power access, converting mining facilities into AI-ready data centers requires substantial investment.

According to a 2026 CoinShares report, AI infrastructure can cost between $8 million and $15 million per megawatt to build. Traditional Bitcoin mining facilities cost approximately $700,000 to $1 million per megawatt.

The difference reflects the additional requirements of AI workloads, including advanced cooling systems, networking equipment and higher reliability standards.

Knecht said miners would need significant infrastructure upgrades before their facilities could support AI computing operations.

Yuliya Barabash, founder of SBSB Fintech Lawyers, highlighted another operational difference. Bitcoin miners can often reduce electricity consumption when power prices rise, while AI data centers generally require a more consistent electricity supply.

Higher energy prices and additional regulatory requirements could therefore reduce profitability or delay projects.

The broader electricity outlook adds another challenge. The International Energy Agency estimates that US data centers consumed 224 terawatt-hours of electricity in 2025, with demand projected to nearly double to 426 terawatt-hours by 2030.

Congressional Scrutiny Could Reshape Infrastructure Costs

The incoming Democratic-controlled Congress could increase scrutiny of how large data center operators finance electricity infrastructure and grid upgrades.

Knecht expects lawmakers to examine whether technology companies are paying an appropriate share of the costs associated with expanding electricity capacity, rather than transferring those expenses to consumers.

Barabash similarly expects attention to focus on ensuring that companies developing large computing facilities bear the infrastructure costs associated with their additional electricity demand.

However, greater scrutiny does not necessarily mean Congress will discourage data center investment. AI infrastructure remains an important component of the US technology economy, creating incentives for policymakers to support domestic computing capacity while addressing energy costs.

For Bitcoin miners, the economic decision will ultimately depend on whether potential AI revenue justifies the substantial investment required to upgrade existing facilities.

Brown argued that AI workloads offer miners a better potential return than traditional Bitcoin mining. Whether that advantage materializes will depend on electricity costs, infrastructure requirements, local restrictions and the ability to secure long-term AI customers.