Bitcoin Miners and AI Firms Compete for Cheap Energy

Bitcoin miners and AI data centers compete for access to cheap, sustainable power. Experts forecast a new wave of institutional investment in mining over the next decade.

Competition for resources intensifies

Bitcoin mining companies are facing growing competition from artificial intelligence data centers. These capital-rich facilities are outbidding miners for access to affordable, sustainable energy, according to GoMining Institutional. Some miners are being priced out or forced to scale back operations.

However, miners retain a key advantage — they can deploy operations in remote, off-grid locations without high-speed internet. This allows them to tap into low-cost energy sources and reduce dependency on traditional power grids.

Institutional capital on the horizon

GoMining’s managing director Jeremy Dreier predicts that the energy battle with AI will drive a new heyday for Bitcoin mining within the next 5–10 years. Institutions already investing in spot Bitcoin ETFs are seeking ways to acquire “virgin” BTC at prices below market value.

The average cost to mine a Bitcoin in Q1 2025 was $64,000, expected to rise to $70,000 by year-end — still around 70% cheaper than the current price of over $119,000. This cost advantage is attracting corporations looking to boost their balance sheets with newly minted coins.

Some companies, like Riot Platforms and Iris Energy, are pivoting to AI operations. Others, such as Block Inc., are innovating in ASIC mining systems to extend hardware lifespan and lower operational expenses.