Global electricity demand for AI data centers reached approximately 29.6 GW by the end of 2025, representing a 200-fold increase since 2022. This surge has triggered intense competition for grid capacity, leading US Bitcoin miners to repurpose their infrastructure for AI and high-performance computing workloads.
The Bitcoin network hashrate fell from over 1.14 ZH/s to a range between 868 and 900 EH/s by mid-to-late 2026, a decline of 15–21%. Public mining firms have secured contracts for AI and HPC hosting valued between $70 billion and $90 billion, with some expecting AI to generate 70% of their revenue by year-end 2026.
Hyperscale Data halted mining at its Michigan site in September 2026 to pursue a $1.2 billion AI contract. While miners control over 27 GW of planned power capacity, VanEck estimates a $50 billion funding gap for companies transitioning to AI, with only 25% of leased capacity currently delivered.
Market conditions are further complicated by the 2024 halving and Bitcoin price volatility following a peak near $126,000. Additionally, New York has introduced a moratorium on new or expanding data centers exceeding 50 megawatts, creating regulatory hurdles for miners attempting to pivot their business models.
