US data center restrictions could give Bitcoin miners an AI advantage, but challenges remain

The results come as major Bitcoin mining companies continue to move into AI. Jamie Brown, CEO of Global Kiwi Labs, said this transition could become more appealing as local restrictions make new data centers harder to build.

“If a Bitcoin miner has not yet repurposed their electric contract and physical plant to AI, the case to do so just got more compelling,” said Brown, whose company hosts servers for crypto exchanges and trading firms.

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Local restrictions make expansion more difficult

The shift by miners to AI infrastructure is already in progress. Publicly listed Bitcoin miners announced more than $70 billion in AI and advanced computing contracts during 2025 and early 2026, according to a first-quarter report from CoinShares.

But state and local decisions can have a more immediate effect on whether data center projects proceed. Local authorities often oversee zoning and building permits and can influence access to electricity.

“A company might have access to an attractive site and a significant amount of power capacity, but if local restrictions prevent it from expanding or upgrading that infrastructure, the opportunity becomes much more difficult to pursue,” said Jordan Knecht, head of strategic integrations at Kresus, a blockchain infrastructure company.

According to Ballotpedia, voters supported 27 measures to restrict or oppose new data centers in last week’s elections. These included five complete bans, 12 partial bans and six-month pauses on new projects in three Maine towns.

In Grove City, Ohio, voters approved a rule requiring public approval for large projects that use more than 20 megawatts of electricity, along with other conditions.

“Federal policy will certainly influence the broader investment environment, but the practical ability to develop and operate these facilities often comes down to conditions in individual markets,” Knecht told Cointelegraph. “For miners looking to transition into AI, I think understanding those local dynamics will be just as important as following developments in Washington.”

Expanding into AI is not that simple

Building data center infrastructure capable of supporting AI can cost between $8 million and $15 million per megawatt, compared with $700,000 to $1 million per megawatt for conventional mining facilities, according to a 2026 CoinShares report.

This cost difference helps explain why having a site with power secured is only a first step for miners moving into AI. “Transitioning from Bitcoin mining to AI workloads requires significant additional investment in infrastructure for cooling, networking, and reliability,” Knecht said.

Yuliya Barabash, founder of SBSB Fintech Lawyers, also highlighted the difference in electricity needs between Bitcoin mining and AI data centers. Bitcoin miners can often cut electricity use when prices increase, while AI data centers typically require a steady power supply, she said.

“Higher electricity prices and additional regulatory requirements could make some projects less profitable or delay their implementation,” Barabash told Cointelegraph.

Meanwhile, electricity demand from US data centers is also expected to grow, according to the International Energy Agency (IEA). The agency estimates that data centers consumed 224 terawatt-hours of electricity in 2025, with that figure projected to nearly double to 426 terawatt-hours by 2030.

The impact of Congressional changes

One issue for the incoming Democratic-controlled Congress is deciding who should pay to expand the grid for large data centers.

Knecht said lawmakers could examine more closely the effect these projects have on electricity costs and the process for approving them. “There may be more pressure to ensure that large data center operators are paying their fair share of infrastructure costs rather than passing those expenses on to consumers.”

Barabash also anticipates scrutiny over who pays for the electricity infrastructure needed to support data centers. “One of the key priorities is likely to be ensuring that technology companies, rather than ordinary consumers, bear the costs of the additional electricity infrastructure their facilities require,” she said.

Still, experts said increased scrutiny does not necessarily mean Congress will discourage data center development. “AI infrastructure is becoming increasingly important to the US economy, and there is still a strong incentive to support investment in domestic computing capacity,” Knecht said.

For miners considering a conversion, the question is whether AI revenue can warrant the expense of upgrading cooling, networking and power systems. Brown believes it can. “Miners will swap to AI because it is a better ROI than mining,” he said.

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