Amid Power Shortages, Bitcoin Miners Become Strategic AI Infrastructure Allies – Bernstein

Bitcoin Miners Become Strategic Partners for AI Data Centers Amid Power Grid Strain

A tightening U.S. power grid is driving closer collaboration between Bitcoin (BTC) miners and AI developers, according to Wall Street broker Bernstein.

Rising demand for AI and digital workloads has made grid access a key bottleneck for new data center expansion, with interconnection timelines stretching up to seven years in some regions. Miners, having secured large renewable energy contracts in prior years, now control over 14 gigawatts (GW) of capacity, providing AI companies with a faster, lower-cost route to scale, analysts led by Gautam Chhugani wrote in a Friday report.

Mining sites operated by IREN (IREN) and Riot Platforms (RIOT) can reduce deployment times by up to 75% compared with building new data centers from scratch.

The opportunity comes amid persistent infrastructure pressures. Bloomberg recently reported that Microsoft anticipates data center shortages through 2026 as cloud and AI demand outpaces its buildout. The surge in high-performance computing is creating optimism that Bitcoin miners can leverage their facilities for AI and data center operations.

Mining facilities are well-suited for the transition: they already operate at high power densities and feature advanced cooling systems, allowing them to accommodate AI workloads faster and more cost-effectively than greenfield projects, Bernstein said.

The report called miners “strategic enablers” of AI expansion and named IREN its top pick, assigning an outperform rating with a $75 price target. IREN shares gained 5.7% in early trading Friday, reaching about $67.50.