Morgan Stanley identifies potential upside for Cipher Mining (CIFR) and Galaxy Digital (GLXY). The growth stems from the Electric Reliability Council of Texas (ERCOT) new Batch Zero process for grid connections.
ERCOT designed this initial batch to fast-track projects from established players. Eligible companies must have already secured site control and submitted necessary deposits.
The batch system manages a massive queue of over 438,000 megawatts in proposed demand. Data centers represent approximately 90% of these power requests.
Cipher Mining recently pivoted from cryptocurrency mining to developing AI and high-performance computing data centers. The company has already met requirements for several sites. This positioning helps Cipher secure power capacity in the increasingly competitive Texas energy market.