Power availability has emerged as a critical challenge in the expansion of artificial intelligence infrastructure, according to a recent analysis by investment bank Bernstein. This insight follows news of a partnership between Google and Blackstone to establish a new AI cloud company. As both companies embark on this initiative, a surprising group of players—Bitcoin miners—are positioned to become significant beneficiaries.
The Wall Street Journal reported that Google and Blackstone plan to leverage Google’s custom chip technology and have committed $5 billion in equity to the venture, with Blackstone retaining a majority stake. Analysts have since revisited the sources of leverage in this rapidly growing AI landscape, identifying potential bottlenecks not in funding or chip supply, but in electricity access.
Bitcoin mining companies have quietly amassed a substantial power capacity, totaling over 27 gigawatts across the United States, making them key players in the race to develop the next generation of AI data centers. Given that securing even a single gigawatt of grid-connected power can require over four years in many states, companies in the sector are finding new relevance as suppliers of this essential resource.
In response to these dynamics, Bitcoin miners have been repositioning themselves as providers of AI infrastructure. According to Bernstein’s analysis, the industry has collectively signed more than $90 billion in contracts related to AI initiatives, covering 3.7 gigawatts of capacity. Approximately one-third of these contracts are with major hyperscalers, while the remainder are with independent AI computing entities termed “neoclouds,” which are increasingly sought after by companies like Google and Blackstone.
A notable deal in this sector is the recent partnership between IREN and Nvidia, valued at $3.4 billion. This agreement includes a $2.1 billion equity commitment from Nvidia aimed at accelerating GPU deployment. Other miners, such as Riot Platforms, have secured colocation agreements with AMD, while Core Scientific and HUT 8 have also established contracts with significant cloud customers.
This evolving landscape places Bitcoin miners in a robust strategic position. Whether leading hyperscalers decide to manufacture their own neocloud services or continue collaborating with independent providers, the persistent need for readily available, grid-connected power persists—and Bitcoin miners currently possess a substantial portion of this essential capacity.
Bernstein has assigned outperform ratings to several Bitcoin mining companies. IREN has a price target of $100, while Riot Platforms stands at $25. CleanSpark and Core Scientific are both rated at $24, and MARA Holdings has a market-perform rating with a price target of $23. The ongoing developments highlight a potentially transformative intersection of Bitcoin mining and AI infrastructure, suggesting that the future of AI in the cloud may depend as much on power availability as it does on artificial intelligence technologies.
