US Bitcoin miners face power squeeze as AI data centers devour the grid

Bitcoin miners spent years building out massive power infrastructure across the US. Now AI companies want it, and they're willing to pay handsomely for the privilege.

Surging electricity demand from AI data centers, which reached approximately 29.6 GW globally by the end of 2025 (up roughly 200x from 2022), has created a zero-sum competition for grid capacity that miners simply cannot win on economics alone.

Bitcoin's network hashrate has dropped from over 1.14 ZH/s to somewhere between 868 and 900 EH/s by mid-to-late 2026. That's a decline of roughly 15-21% from the peak, driven largely by public miners repurposing their facilities for AI and high-performance computing workloads.

Publicly traded Bitcoin mining companies have signed contracts totaling between $70 billion and $90 billion for AI and HPC hosting. Some operators project that AI could account for as much as 70% of their revenue by the end of 2026.

Hyperscale Data offers one of the more dramatic case studies. The company suspended mining operations at its Michigan facility in September 2026 to pursue a potential $1.2 billion AI contract.

The 2024 Bitcoin halving, which slashed block rewards in half, made this decision even easier for many operators. With rewards cut and Bitcoin's price showing volatility after peaking near $126,000 before a notable pullback, mining margins got squeezed from both directions.