AI Data Centres Are Banging On Crypto’s Door
AI data centres consume vast amounts of electricity, but they are not self-sufficient. Training a large language model requires electricity equivalent to powering thousands of homes. Traditional data centers were not operating at full capacity due to variable demand. So thier electricity usage was also slightly limited.
However, modern data centres operate 24/7 due to consistent demand and supply issues, so they need more electricity to run all functions smoothly. The Wall Street Journal states taht “Developers desperately need access to electricity, and bitcoin miners are in a prime position to assist.”
When AI clusters concentrate in one region, local power grids face reliability issues because they must also meet the area’s needs. Besides this, the inconsistent supply is completely unacceptable in the case of AI data centers. Similarly, electricity bills are becoming one of the biggest expenses for AI firms.
Even in some cases, electricity bills exceed the hardware cost, which is troubling and not economically beneficial. It also causes climate impacts because, without clean energy, along with AI growth, carbon emissions risks are rising.
According to Galaxy Digital Insights, “Bitcoin miners with large-scale acreage, water for cooling, dark fiber, reliable power, a skilled labor force, power approvals, and critical long-lead time infrastructure components are in a prime position to increase the value of their assets by meeting demand in the rapidly growing AI/HPC data center market.”
Crypto Miners Already Have the Setup
Compared to AI data centers, crypto miners have sufficient electricity needs. Mining first is already operating high-density computing rigs. They have large cooling systems and have also signed numerous energy contracts to secure long-term, cheap electricity. They often sign long-term contracts in areas with surplus power, such as Kazakhstan.
Now, companies are pivoting from crypto mines to AI data centers, like Bitdeer, which is repurposing them. As both industries require an uninterrupted power supply and the same level of cooling systems, this shared need makes the conversion easier and more beneficial for AI data centers.
The Galaxy Digital further adds that “Goldman Sachs Research forecasts U.S. data center demand to reach 45 GW by 2030, with power demand growing at a 15% CAGR from 2023–2030, driven by AI.
Both types of firms rely on GPUs/ASICs, and crypto miners often locate near renewable or stranded energy sources. These sources include gas flaring sites, hydro, wind, etc. AI can easily tap into these sites, enabling both industries to complement each other in meeting their electricity needs.
The Road Ahead for AI–Crypto Collaboration
Shared electricity infrastructure will create opportunities for both. It will reduce costs and stabilize miners’ income, especially during crypto downturns. There is a high potential for both industries to accelerate renewable energy adoption if facilities commit to clean energy.
However, sustainability is one of the core risks, as the wavering reliance on fossil fuels can bring strong reactions and climate penalties. Similarly, concentration demand because of both industries’ reliance can cause a complete blackout.
It can also force a sudden grid upgrade if they are not reliable for heavy supply. It can also trigger high taxes from the government because of high consumption. It might also be possible that, in the end, the AI firms will build their own dedicated facilities and reduce miners’ roles.
