Bitcoin miners that have already secured power supplies could gain an advantage in the race to build artificial intelligence data centers, after voters in several US communities backed limits on new development. Industry experts told Cointelegraph that the midterm results could also bring closer congressional scrutiny of who pays for the grid upgrades such facilities require.

The Nov. 3 US midterms featured local data center measures on the same ballots as congressional races in several states. Amid concerns over 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. That lopsided outcome underscores how data center expansion has become a contested local political issue across multiple states.

The restrictions span a range of approaches, including citywide bans, limits on larger facilities, temporary pauses on new projects and voter approval requirements for certain developments.

Mining-to-AI pivot gains momentum

The results come as major Bitcoin mining companies continue their move into AI. Jamie Brown, CEO of Global Kiwi Labs — a company that hosts servers for crypto exchanges and trading firms — said local restrictions that make it harder to build new data centers could make that transition more attractive.

“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,” Brown said.

The shift is already underway. Publicly listed Bitcoin miners announced more than $70 billion in AI and advanced computing contracts during 2025 and early 2026, according to a first-quarter report by CoinShares.

Local restrictions complicate expansion

State and local decisions can have a more immediate impact on whether data center projects move forward, since 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 blockchain infrastructure company Kresus.

According to Ballotpedia, voters backed 27 measures to limit or oppose new data centers in the elections. Those included five complete bans, 12 partial bans and six-month pauses on new projects in three Maine towns. In Grove City, Ohio, voters approved a rule requiring public approval for large projects that use more than 20 megawatts of electricity, among other conditions.

“Federal policy will certainly influence the broader investment environment, but the practical ability to develop and operate these facilities often comes down to conditions in individual markets,” Knecht told Cointelegraph. “For miners looking to transition into AI, I think understanding those local dynamics will be just as important as following developments in Washington.”

Converting to AI is not straightforward

Building AI-ready data center infrastructure can cost between $8 million and $15 million per megawatt, compared with $700,000 to $1 million per megawatt for traditional mining facilities, according to a 2026 CoinShares report. That gap helps explain why a site with power already secured is only a starting point for miners moving into AI.

“Transitioning from Bitcoin mining to AI workloads requires significant additional investment in infrastructure for cooling, networking, and reliability,” Knecht said.

Yuliya Barabash, founder of SBSB Fintech Lawyers, also pointed to differences in electricity needs between the two types of facilities. Bitcoin miners can often reduce electricity use when prices rise, while AI data centers typically require a consistent power supply, she said.

“Higher electricity prices and additional regulatory requirements could make some projects less profitable or delay their implementation,” Barabash told Cointelegraph.

Electricity demand from US data centers is also expected to climb. The International Energy Agency (IEA) estimates that data centers used 224 terawatt-hours of electricity in 2025, a figure projected to nearly double to 426 terawatt-hours by 2030.

The impact of congressional changes

One question facing the incoming Democratic-controlled Congress, seated following the same Nov. 3 elections, is who should pay to expand the grid to accommodate large data centers. Knecht said lawmakers could take a closer look at how those projects affect electricity costs and how they are approved.

“There may be more pressure to ensure that large data center operators are paying their fair share of infrastructure costs rather than passing those expenses on to consumers,” he said.

Barabash expects similar scrutiny of who pays for the electricity infrastructure needed to support data centers.

“One of the key priorities is likely to be ensuring that technology companies, rather than ordinary consumers, bear the costs of the additional electricity infrastructure their facilities require,” she said.

Still, the experts noted that closer attention does not necessarily mean Congress will discourage data center development.

“AI infrastructure is becoming increasingly important to the US economy, and there is still a strong incentive to support investment in domestic computing capacity,” Knecht said.

For miners weighing a conversion, the central question is whether AI revenue can justify the cost of upgrading cooling, networking and power systems. Brown thinks it can.

“Miners will swap to AI because it is a better ROI than mining,” he said.

The next signals to watch are how strictly the newly approved local rules are applied, and whether Congress follows through on the grid-cost questions the experts expect it to examine.