According to Foresight News, a report by Bloomberg highlights that artificial intelligence (AI) companies have significantly surpassed cryptocurrency mining firms in terms of energy demand at data centers, emerging as a new dominant force in the global electricity market. AI technology giants are willing to pay up to three times the price that Bitcoin miners offer for electricity to support their data centers. This intense competition is pushing Bitcoin miners to turn to marginalized or intermittent power resources.
Fred Thiel, CEO of MAR Holdings, noted that the cost of electricity paid by AI companies is considerably higher than that of crypto miners, putting the latter under survival pressure. For instance, his company recently acquired a wind power plant in Texas to maintain operations, but such power supplies are not stable. Additionally, the disadvantage of crypto miners in terms of loan default rates and financing costs makes power suppliers more inclined to collaborate with technology giants.
It is noteworthy that the recent surge in Bitcoin prices, surpassing $100,000, might slow down the trend of miners' data centers being acquired. However, industry experts predict that Bitcoin miners will be further pushed to edge markets that cannot meet AI's electricity demands, such as inefficient power facilities in remote areas. This competitive landscape indicates a significant shift in the energy demand pattern between the AI and crypto industries, while also revealing the relative weakness of miners in terms of technology and capital capabilities.
