Last Thursday, ERCOT sent its long-awaited notices to utilities for conditional classifications for Batch Zero, and the press releases are starting to trickle in for companies that made the cut.
To recap, the classifications include: base load (projects whose MW requests are locked in and not subject to the Batch Zero allocation/reallocation study), studied load (projects whose requested MWs are subject to the study), and excluded load (projects that will not be included in the study and need to reapply for another batch).
So far, the following companies have confirmed their classifications under Batch Zero:
Hut 8: The company announced that it received conditional base load designation for its 1 GW Beacon Point site last Friday.
IREN: Today, IREN announced that ERCOT granted Sweetwater 1 (1,400 MW) and Sweetwater 2 (600 MW) conditional base load designation. The company also mentioned that “Additional large-scale projects within IREN’s broader development pipeline have also been included in Batch Zero,” ostensibly as studied load, with IREN not disclosing any additional information on the projects.
Soluna: Soluna announced that Kati 1 and Kati 2, each consisting of 83 MW, have received conditional base load designation.
CleanSpark: In its August operational update today, CleanSpark disclosed that it received conditional base load designation for its Sealy (285 MW) and Brazoria (300 MW) sites, and that a 300 MW expansion at Brazoria was included as studied load.
It’s important to remember that these designations are conditional, not final. Each company will still need to pass muster under Governor Abbott’s audit and satisfy either the August 1 or November 1 quarterly stability assessment, in addition to other routine regulatory conditions. If a company loses its base load designation for failing these requirements, they can appeal to ERCOT through its Alternative Dispute Resolution process, and projects can appeal studied load classifications through the Batch Zero reconciliation process.
Thus far, none of the other stocks we track have released information regarding their Batch Zero status. Perhaps we can read between the lines in stock price moves today to divine who got what they wanted (and who fell short), but we also wouldn’t be surprised to see more announcements trickle through before the week is up.
-CMH
Daily Podcast
Today, we open with a stock update – data center and AI stocks are ripping, and IREN, CIFR, CLSK, WULF, HUT, MARA, and other are up significantly, particularly those likely to have received favorable approvals for ERCOT’s Batch Zero designations. We also cover IREN receiving base load designation for Sweetwater 1 and 2 in Batch Zero, Palantir and Nebius new agreement for sovereign AI enterprise compute, Soluna’s project Kati receiving base load designation for Batch Zero, and how West Virginia’s new data center tax law is a boon for the state and its localities.
BLOCKSPACE
IREN Stock Price Update and Batch Zero Approval, Palantir Taps Nebius for Sovereign AI, Soluna Batch Zero Approval, Data Centers Enrich WV
In the news
IREN’s 2GW Sweetwater hub conditionally enters ERCOT Batch Zero as base load
AI neocloud IREN (NASDAQ: IREN) said Tuesday that ERCOT conditionally included its 2GW Sweetwater Hub in the Batch Zero process as Base Load. The classification covers both Sweetwater projects in Texas, but does not amount to final interconnection approval or set an energization date.
Shares of IREN jumped 6% on the news Tuesday morning, trading hands at $47.36.
Sweetwater 1 accounts for 1,400MW of the hub, while Sweetwater 2 represents the remaining 600MW. Read more.
Palantir names Nebius preferred sovereign AI infrastructure partner
On Tuesday, Palantir designated Nebius (NASDAQ: NBIS) its preferred partner for sovereign AI infrastructure, linking Palantir’s (NASDAQ: PLTR) enterprise software with Nebius’s AI cloud and inference capacity.
After the integration period, Palantir’s enterprise perimeter will contain Nebius compute and inference endpoints. Eligible commercial customers will be able to use the infrastructure while retaining control over their compute, data and models. Read more.
Soluna completes 83 MW Kati 1 as ERCOT preserves position for full 166 MW campus
Bitcoin miner turned AI factory builder Soluna (NASDAQ: SLNH) has energized the final 14 MW at its Project Kati 1 on Tuesday, completing the 83 MW Texas site. The milestone increased Soluna’s company-wide operating capacity to about 206 MW.
ERCOT also conditionally classified the full 166 MW Kati campus as Base Load within its Batch Zero interconnection process. The designation covers the operating Kati 1 site and Kati 2, a planned 83 MW AI/HPC expansion in Willacy County. Read more.
Rosenblatt keeps Cipher at $30 as 2.5 GW generation plan targets ERCOT bottleneck
Rosenblatt analyst Chris Brendler reiterated a Buy rating and $30 target on Friday for Powershell provider Cipher (NASDAQ: CIFR), implying 72.7% upside from the note’s $17.37 share price. The powered land developer announced development of natural-gas pipelines at multiple Texas sites to support up to 2.5 GW of on-site generation.
According to the announcement, nearby natural-gas supplies will be linked to Cipher’s sites by the pipelines. Cipher plans to partner with power providers that would develop and operate the generation facilities, with initial capacity expected before the end of 2027. Cipher did not disclose the sites or required capital spending. Read more.
Post of the Day
They’re going to depict the AI elites as solipsistic psychopaths, aren’t they? (Well, to be fair…)
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