Annualized electricity demand for Bitcoin mining rose to 190 terawatt-hours (TWh) in December 2025, marking a 38% increase from the 138 TWh recorded in mid-2024. The findings from the Cambridge Centre for Alternative Finance (CCAF) were presented by Alexander Neumueller at the Energy Investors Forum in Dallas. This latest estimated data is drawn from survey responses from mining companies representing more than half of the global Bitcoin hashrate.
Although newer mining rigs offer improved per-unit energy efficiency, these efficiency gains have failed to keep pace with hashrate growth. Consequently, estimated greenhouse gas emissions still rose by 20%, from 40 million tonnes of CO₂e to 48 million tonnes of CO₂e. The growth in emissions lagged behind electricity consumption due to a shift toward cleaner energy sources.
Energy Mix Shifts Toward Hydropower
Low-carbon energy now accounts for 59.4% of the mining power mix, up from 52.4% in the previous study. The primary shift: hydropower has overtaken natural gas as the industry’s single largest energy source.
The previous 2025 study placed natural gas at 38.2%, with total renewables at 42.6%, nuclear at 9.8%, and coal at 8.9% - down from a peak of 36.6% in 2022. The recent rise in hydropower occurred because CCAF’s expanded survey captured new hydro-rich markets such as Ethiopia. The country has been pushing Bitcoin mining expansion around low-cost electricity from the Grand Ethiopian Renaissance Dam project. The full survey data will be published in the second edition of the Digital Mining Industry Report in late 2026.
Finding a Lifeline in AI Clients
The surging power demand coincides with business diversification efforts. Around 10% of survey respondents reported already allocating part of their facility capacity to AI and high-performance computing (HPC). Meanwhile, more than 40% of the remaining miners are actively exploring similar moves.
The motivation centers on securing revenue stability beyond Bitcoin price volatility. Publicly traded mining firms have announced AI and HPC contracts valued at over $70 billion. Tangible evidence is seen in TeraWulf’s first-quarter 2026 performance, where the company generated $21 million purely from HPC hosting services - surpassing its Bitcoin mining revenue of under $13 million during the same period.
For mining firms, allocating facility space to artificial intelligence clients is no longer an optional strategy. Selling power outside the crypto sector has proven to generate more predictable revenue, and operators are gradually realizing that profit-generating hardware does not necessarily have to be mining rigs.
Via crypto.news.
Read also: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
