US data center restrictions could give Bitcoin miners an edge in AI, though challenges remain

Bitcoin miners with power already secured could have an edge in the race to build AI data centers after voters in several US communities backed limits on new development. The midterms could also bring closer scrutiny from Congress over who pays for the grid upgrades those facilities need, industry experts told Cointelegraph.

Voters in several states weighed in on data center development during the Nov. 3 US midterms, when local measures appeared on the same ballots as congressional races. Amid concerns about rising electricity costs, water use and the impact on nearby communities, voters favored limiting development in 40 of the 41 local contests tracked by Ballotpedia.

The restrictions include citywide bans, limits on larger facilities, temporary pauses on new projects and voter approval requirements for some developments.

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

“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 harder

Miners’ shift to AI infrastructure is already underway, with publicly listed Bitcoin miners announcing more than $70 billion in AI and advanced computing contracts during 2025 and early 2026, according to a first-quarter report by CoinShares.

But state and local decisions can have a more immediate impact on whether data center projects move forward. That’s because 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.

Last week, voters backed 27 measures to limit or oppose new data centers in the elections, according to Ballotpedia. These included five complete bans, 12 partial bans and six-month pauses on new projects in three Maine towns.