New York permit freeze tests Bitcoin miners' AI expansion

New York has opened a new regulatory front that could affect Bitcoin miners trying to shift into AI hosting. On July 14, Gov. Kathy Hochul ordered state regulators to pause incomplete permit applications for new or expanding data centers that would use at least 50 megawatts of power.

The pause does not stop every project. Applications already deemed complete can move forward, and local permits are not covered. Still, it interrupts part of the pipeline for large computing campuses while the state studies effects on power demand, water use, air quality, noise, and nearby communities.

That matters for BTC miners because many have tied their next phase of growth to AI infrastructure. Public miners have announced more than $70 billion in AI and high-performance computing hosting contracts, aiming for steadier income than Bitcoin mining can offer. CoinShares Valkyrie strategist Matthew Kimmell said AI could account for about 80% of public miners' revenue by the end of 2026.

The shift is expensive and timing matters. CoinShares estimates Bitcoin mining infrastructure costs about $700,000 to $1 million per megawatt, versus roughly $8 million to $15 million per megawatt for AI facilities. If more states copy New York, miners could face slower buildouts, higher financing costs, and fewer places to redeploy power-heavy sites.