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Hinojosa and Sanders push data centre pauses that threaten Bitcoin miners' AI pivot
Democrats elected in Texas and Ohio are seeking moratoriums on new data centres, hitting miners that are converting power contracts into AI hosting deals.
Why it matters: Miners are converting cheap power and grid connections into AI hosting revenue, so state-level permit freezes could delay the deals their valuations now rest on.
Key points
- Texas governor-elect Gina Hinojosa vowed a moratorium on all data centre approvals until the legislature passes protections
- Sen. Bernie Sanders called for a national moratorium after IREN fell 16% and Cipher Mining 14.6% on 5 Nov
- Wells Fargo says Texas holds 27% of planned US data centre capacity, where Riot has a 910-megawatt AI lease
Democrats elected in the week of 2 November are pushing to pause or restrict new data centres, a threat to Bitcoin miners that are betting on AI hosting.
Sen. Bernie Sanders called for a national data centre moratorium, citing local referendums, CNBC reported on 5 November. In the House, Reps. Yassamin Ansari and Greg Casar backed a pause, and Sherrod Brown won back an Ohio Senate seat saying he does not work for data centres.
Texas is the front line: Wells Fargo says the state holds 27% of planned US data centre capacity. Keel Infrastructure sold its entire treasury for $192m in the week of 2 November.
A national moratorium is unlikely given President Donald Trump's veto, so pressure will come from state permits and hearings. Hinojosa takes office in January.
Live updates on NewsFeeds:MiningDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
How this was produced: an AI model wrote this summary of Bitcoin.com News’s report, which we credit and link above. Read our Editorial and AI policy. Spotted a mistake? See Corrections.
Not investment advice. Read the risk disclaimer.