AI’s Energy Gold Rush: Battling Bitcoin Miners for Power Supply

As U.S. technology giants like Amazon and Microsoft rapidly expand their AI and cloud computing data centers, they are in fierce competition for a shrinking supply of electricity, often clashing with bitcoin miners who have long dominated energy-intensive operations. These data centers, projected to account for up to 9% of total U.S. electricity by the decade’s end, have sent AI and tech companies scrambling for power assets previously held by cryptocurrency miners. While some bitcoin miners are profiting by leasing or selling their power-connected infrastructure to tech firms, others are struggling as they lose access to the electricity they need to stay in business. Major players like Amazon have secured deals to repurpose mining sites for AI operations, while some miners, such as Core Scientific, are pivoting their facilities toward AI and cloud computing. However, the transition is not smooth for all miners, as retrofitting bitcoin mines to handle sophisticated AI data centers requires extensive infrastructure investment, leaving many unable to compete with the well-capitalized tech giants driving this energy land grab.