Bitcoin Miners Squeezed Out as AI Data Centers Devour Grid Capacity

US Bitcoin miners are facing a power squeeze as AI data centers gobble up grid capacity. For years, miners built massive infrastructure across the country to support their operations. However, with the rapid growth of AI companies, they're now competing for power on economics alone.

The global demand for electricity from AI data centers has surged by approximately 200 times since 2022, reaching around 29.6 GW by the end of 2025. This has created a zero-sum competition for grid capacity that miners cannot win on their own.

As a result, many public miners are repurposing their facilities for AI and high-performance computing workloads. According to publicly traded companies, they've signed contracts totaling between $70 billion and $90 billion for AI and HPC hosting. Some operators even project that AI could account for up to 70% of their revenue by the end of 2026.

Hyperscale Data is a notable example. 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 cut block rewards in half, made this decision easier for many operators. With rewards slashed and Bitcoin's price showing volatility after peaking near $126,000, mining margins got squeezed from both directions.