Key facts
- Bernstein analysts see Bitcoin mining companies as key to solving AI data center power constraints.
- Partnerships between Bitcoin miners and AI companies are increasing.
- Over 7.5 gigawatts of capacity have been contracted through AI-miner deals in July.
- Hut 8 and IREN announced significant AI infrastructure deals.
- Political pushback against new US data center construction is growing.
Bernstein analysts maintain an optimistic outlook on the Bitcoin mining sector, viewing its growing partnerships with AI companies as crucial for meeting the immense power demands of artificial intelligence data centers. The firm's tracking indicates a new AI-related deal involving Bitcoin miners every week in July, collectively representing over 7.5 gigawatts of capacity, equivalent to approximately $150 billion in multi-year contracts.
Analysts highlight that third-party computing power from Bitcoin miners is becoming increasingly valuable as access to electricity emerges as a significant bottleneck for the AI industry. This is compounded by rising political opposition to the construction of new data centers in the United States.
Recent significant deals include Hut 8's 15-year, $9.8 billion lease for its AI data center campus and IREN's disclosure of $2.8 billion in cloud services contracts with AI developers. MARA Holdings announced plans to acquire a Texas site with up to 2 gigawatts of capacity for its AI business, while TeraWulf signed a 20-year data center lease with AI startup Anthropic, potentially generating around $19 billion in revenue. Bitdeer has also ventured into AI cloud services and high-performance computing.
The expansion into AI infrastructure by Bitcoin miners is occurring amidst growing political scrutiny. In Texas, a proposal seeks stronger local approval processes and the repeal of tax breaks for AI data centers. In Oregon, Senator Ron Wyden has expressed concerns about the water consumption of large data centers. Furthermore, the Trump administration's past initiatives aimed to expand AI infrastructure without increasing household electricity costs, indicating a broader governmental focus on balancing AI growth with energy and resource management.