They estimate that miners have approximately nine months to negotiate favorable deals while data center applications await approval and grid connections.

"We think select miners have around nine months to sign favorable deals with a handful of well-funded hyperscalers/AI startups, while data center applications remain in limbo, awaiting approval and or grid interconnections," JPMorgan analysts Reginald L. Smith and Charles Pearce said in a new report. The analysts highlight that this opportunity arises as the demand for AI-driven computing continues to surge.

The report noted that bitcoin mining facilities are increasingly recognized for their potential as AI GPU hosting centers. However, the pool of potential partners for bitcoin miners is relatively small, primarily consisting of major hyperscalers and well-funded AI startups. Notably, outfitting a 100 MW site with the latest generation GPUs can cost up to $3 billion, underscoring the significant investment required.

JPMorgan suggests that bitcoin miners could capitalize on the growing need for HPC hosting centers, as they already possess much of the necessary infrastructure.

"U.S.-listed bitcoin miners have access to more than 5 GWs of power in the U.S., with another 6 GWs in various stages of development," the analysts said. In contrast, there is a backlog of more than 12 GWs of data center capacity in various stages of planning and construction, and approval and construction of these could take up to 6 years, the report added.

The U.S. has approximately 1,300 GWs of total electricity generation capacity, with data centers and bitcoin mining sites consuming just 2%, 21 GWs, and less than 1%, 5 GWs, of the country’s energy, respectively.

The report said that the consensus views for Nvidia and five of the largest U.S. hyperscalers, and a constrained power grid, point to "insatiable demand for data center capacity through 2026."

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