AI Energy Consumption Set to Surpass Bitcoin by 2026
A new research paper reveals that AI energy consumption is projected to exceed that of Bitcoin mining by early 2026. The study, published in Joule, indicates that AI could consume up to 49% of global data center electricity by the end of 2025.
Tech giants like Google and Microsoft are reportedly obscuring their AI-specific power usage. Unlike Bitcoin’s transparent energy consumption data, these companies only provide aggregate figures, masking AI’s significant environmental impact. 
"Big tech companies are well aware of this trend, as companies such as Google even mention having faced a ‘power capacity crisis’ in their efforts to expand data center capacity," stated Alex de Vries-Gao, a PhD candidate at Vrije Universiteit Amsterdam.
The research estimates that Nvidia utilized 44-48% of the world’s advanced chip packaging capacity in recent years, with projections showing production is set to double in 2025.
De Vries-Gao’s analysis indicates AI’s power demand may hit 23 gigawatts by January 1, 2026, translating to around 201 terawatt-hours annually—surpassing Bitcoin’s current consumption of 176 TWh.
“Since ChatGPT sparked the AI hype, we’ve never seen anything like this again," de Vries-Gao added. "As a result, it remains virtually impossible to gain a good insight into the actual energy consumption of AI.”
The demand for power in AI operations isn’t slowing down. Nvidia and AMD recently reported record revenues, while OpenAI announced Stargate, a $500 billion data center initiative. This places AI as the most lucrative sector in tech, with major companies surpassing the entire $3.4 trillion cryptocurrency market cap.
As regulatory frameworks rapidly evolve to support AI innovation, the environmental concerns remain overshadowed. Expect continued scrutiny as AI’s energy demand grows, leaving the planet’s health in a precarious position.
