Texas Governor Greg Abbott on Monday directed the Public Utility Commission of Texas and grid operator ERCOT to audit all data center projects currently in the state’s interconnection queue. ERCOT then paused its “Batch Zero” large-load approval process, which had been scheduled to release results this month. Data center applications now account for about 90% of ERCOT’s 474 GW interconnection queue, according to the report cited by ChainCatcher. In a client note published Tuesday, Bernstein analysts said the review is likely to curb speculative development and tighten incremental power capacity supply, increasing the scarcity value of already approved capacity. The firm said that dynamic could favor existing bitcoin miners and AI operators with secured access to power. Bernstein highlighted Cipher Digital, CleanSpark and Core Scientific as more exposed because their near-term expansion plans rely on Texas grid access, while Terawulf was described as more resilient due to power assets spread across Kentucky, Maryland and New York. Riot Platforms and IREN, which already hold large approved operating assets in ERCOT, were identified as potential beneficiaries.
Texas Governor Greg Abbott on Monday ordered the Public Utility Commission of Texas (PUCT) and grid operator ERCOT to audit all data center projects currently sitting in the state queue. ERCOT then paused its “Batch Zero” large-load approval process, whose results had been due this month.
Data center applications currently make up about 90% of ERCOT’s 474 GW interconnection queue.
In a client report released Tuesday, Bernstein analysts said the regulatory review would curb speculative development and reduce the supply of new power capacity. That, in turn, would raise the scarcity value of power capacity that has already been approved, a setup the firm said is favorable for existing bitcoin miners and AI operators.
Bernstein said Cipher Digital (CIFR), CleanSpark (CLSK) and Core Scientific (CORZ) face greater exposure because their recent expansion plans depend on access to the Texas grid. Terawulf (WULF), by contrast, was described as better positioned to absorb the risk because its power assets are spread across Kentucky, Maryland and New York. Riot Platforms (RIOT) and IREN were identified as likely beneficiaries because they already have large approved operating assets within ERCOT.
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