Bitcoin miners could play key role in supporting AI data centers amid power crunch – report

Bitcoin miners could play a crucial role in supporting artificial intelligence data centers facing power shortages.

That’s according to Greg Miller, managing director of digital infrastructure equity research at Citizens JMP.

In a research note, Miller stated that with a “critical power shortage on the horizon, blockchain-focused companies are uniquely positioned.”

He noted that with the growing power requirements of Nvidia’s GPUs, “we anticipate power shortages that could easily exceed 40GW” in the coming years.

As a result, Miller believes blockchain companies are “uniquely situated to provide additional space and power for data centers,” due to their “ability to leverage existing deployments of low-cost/high-density power configurations.”

Subsequently, Miller argued that “more than 5GW of incremental capacity could be provided, creating $20+ billion of potential incremental equity value.”

In the note, Miller went on to highlight three Bitcoin mining companies that play a role in providing AI-hosting services, namely, Hut 8 Mining, Core Scientific, and TeraWulf.

The role of cryptocurrency miners in supporting AI-hosting is growing in popularity, with several prominent players pivoting towards the AI space over recent years.

Earlier this month, Core Scientific announced it was set to focus on AI colocation following less-than-stellar crypto revenues.

In January, TeraWulf signed a ten-year data center lease agreement with Core42 to expand its AI infrastructure offerings to its US customer base.

Finally, in March, Hut 8 reported it had secured 592 acres of land in West Feliciana Parish, Louisiana, for the construction of a $2.5 billion data center dedicated to Bitcoin mining and AI workloads.

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