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The Public Utility Commission of Texas approved ERCOT's new "Batch Zero" process on Thursday, a framework designed to evaluate large electricity users in batches rather than one by one, as the state's grid operator grapples with more than 438,000 MW of proposed demand — roughly 90% of which comes from data centers. The move comes as shares of several bitcoin miners with large Texas campuses that are expanding into AI and high-performance computing workloads rallied: Cipher Digital (CIFR) hit an all-time high of $30 and gained over 10%, while Core Scientific (CORZ) and Riot Platforms (RIOT) rose 3% and 2.2% respectively.
Why it matters
The new framework is a procedural fix to a real bottleneck. ERCOT's existing one-by-one review of large-load interconnection requests was buckling under the weight of AI-driven demand, and the batch approach lets the agency assess how all proposed projects interact with the existing grid in a single coordinated pass — producing a single map of required transmission upgrades rather than a string of piecemeal reviews.
For bitcoin miners that have spent years building power-hungry campuses in Texas, the timing is consequential. Their facilities are already grid-connected, already permitted, and increasingly being marketed to hyperscalers who need compute capacity faster than greenfield data centers can deliver it. Cipher Digital has signed multiple AI hosting deals across its Texas footprint, including a $5.5 billion AWS lease at its Black Pearl campus and a $3 billion Google-backed Barber Lake agreement. Riot Platforms reported $33 million in data center revenue earlier this year while expanding its AMD lease to 50 MW, and is building out a Corsicana campus sized for up to 1 GW. Core Scientific generated $78 million in colocation revenue in Q1 — more than double its bitcoin mining revenue.
Market impact
The Texas action is one piece of a broader federal push: on the same day, FERC ordered six regional grid operators outside Texas to demonstrate that data center buildouts in their regions are not pushing costs onto households and businesses. FERC Chair Laura Swett called the issue one of the country's top priorities.
Frequently asked questions
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What is ERCOT's "Batch Zero" process?
It's a new framework approved by the Public Utility Commission of Texas on Thursday under which ERCOT will evaluate large-scale electricity user interconnection requests in batches rather than one at a time, producing a single coordinated map of required transmission upgrades.
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Why did Texas change its grid-connection review process?
ERCOT's existing one-by-one review was buckling under a 438,000 MW interconnection queue, roughly 90% of which comes from data centers. Batch evaluation lets the agency assess how all proposed projects interact with the grid at once.
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How are bitcoin miners benefiting from the change?
Miners with large Texas campuses that have already secured grid connections and permits are positioned to absorb the AI data center wave. Cipher Digital, Core Scientific, and Riot Platforms all rallied on the news, with Cipher hitting an all-time high of $30.
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What AI hosting deals do these Texas-campused miners already have?
Cipher Digital has signed a $5.5 billion AWS lease at its Black Pearl campus and a $3 billion Google-backed Barber Lake agreement. Riot Platforms expanded its AMD lease to 50 MW and is building a Corsicana campus sized for up to 1 GW. Core Scientific generated $78 million in colocation revenue in Q1, more than double…
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What did FERC do on the same day?
FERC ordered six regional grid operators outside Texas to demonstrate that data center buildouts in their regions aren't passing costs onto households and businesses and that grid reliability is protected. FERC Chair Laura Swett called the issue one of the country's top priorities.
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