A tightening U.S. power grid is driving bitcoin miners and AI developers into closer alignment, according to Wall Street broker Bernstein.
Soaring demand from AI and digital workloads has made grid access one of the biggest constraints on new data center growth, with interconnection timelines stretching to seven years in some regions, the broker said in a report on Friday.
Miners, who secured large renewable power contracts years ago, now control more than 14 gigawatts (GW) of capacity and offer AI providers a shortcut to scale, analysts led by Gautam Chhugani wrote.
Sites owned by IREN (IREN) and Riot Platforms (RIOT) can cut deployment time by up to 75% compared with greenfield projects, the analysts wrote.
The sector is riding broader momentum. Bloomberg reported that Microsoft expects data center shortages to persist through 2026 as cloud and AI demand outpaces its infrastructure buildout. The surge in demand for high-performance computing is fueling optimism that bitcoin miners can capitalize by expanding into AI and data center operations.
Because bitcoin facilities already run at high power densities and have advanced cooling systems, they can be retrofitted for high-performance AI workloads far faster and cheaper than new builds, Bernstein said.
The broker called miners “strategic enablers” of the AI buildout and named IREN its top pick, with an outperform rating and a $75 price target.
IREN was 5.7% higher in early trading Friday, around $67.50.
Read more: Bitcoin Miners Rally in Pre-Market as Sector Nears $90B Market Cap
