Cambridge finds Bitcoin mining is growing cleaner as hydropower leads, while AI diversification remains in its early stages.
Bitcoin mining is using more electricity than ever, yet its carbon footprint is growing at a slower pace. Fresh research from the Cambridge Centre for Alternative Finance points to a larger share of power coming from low-carbon sources, led by hydropower. Even so, rising network activity continues to push overall emissions higher. Early findings also suggest many mining firms are considering artificial intelligence, although few have made the move.
Cambridge Research Shows Bitcoin Mining Growing Faster Than Its Carbon Footprint
Bitcoin’s annual electricity consumption reached roughly 190 terawatt-hours by December 2025, according to preliminary Cambridge research. That marks a sharp rise from 138 terawatt-hours recorded in June 2024. Alexander Neumueller shared the figures during the inaugural Energy Investors Forum in Dallas ahead of the release of Cambridge’s second Digital Mining Industry Report.
Carbon emissions increased at a slower pace than electricity demand. Estimated emissions climbed from about 40 million metric tons of carbon dioxide equivalent to 48 million tons over the same period. Growth in emissions reached around 20%, while electricity use rose by roughly 38%.
Much of that gap came from changes in Bitcoin mining’s electricity mix. Low-carbon energy accounted for 59.4% of total power use, compared with 52.4% previously. Hydropower became the largest single energy source, moving ahead of natural gas.
Hydropower Leads Bitcoin Mining’s Energy Mix as Sustainable Power Reaches 59.4%
Research presents a more balanced picture of Bitcoin’s environmental impact. Rising electricity demand remains a concern. Yet each unit of electricity now carries a lower carbon intensity than before, reducing the pace of emissions growth.
Cambridge based its findings mainly on survey responses from mining companies representing just over half of the global Bitcoin hashrate. Neumueller noted that participation improved compared with the previous report. Still, survey data can favour companies and regions that are more willing to share operational details.
Cambridge’s earlier report estimated annual electricity use at 138 terawatt-hours and emissions at 39.8 million metric tons of carbon dioxide equivalent. Sustainable sources, including renewables and nuclear power, supplied 52.4% of electricity in that study.
Several factors shaped the latest findings:
- Electricity demand rose to about 190 terawatt-hours as more mining machines joined the network.
- Low-carbon energy increased to 59.4% of the reported electricity mix.
- Hydropower replaced natural gas as Bitcoin mining’s largest power source.
- Ethiopia gained attention as a mining location following additional hydroelectric generation.
Growing activity across the Bitcoin network appears to have outweighed gains in mining hardware efficiency. Modern machines perform more calculations with less electricity. Even so, rising competition among miners pushed total electricity consumption higher.
Geography also played a role in changing the reported energy mix. Broader survey coverage included more mining operations in hydro-rich countries such as Ethiopia. New electricity capacity from the Grand Ethiopian Renaissance Dam has helped attract mining businesses seeking lower-cost power. Changing survey participation can influence estimates of Bitcoin’s global energy sources.
Cambridge: Nearly 90% of Miners Expect AI and HPC Expansion Across the Industry
Cambridge also examined whether miners are shifting toward artificial intelligence and high-performance computing. Only about one in ten surveyed companies had already assigned part of their power capacity to AI or accelerated computing services. Interest, however, appears much stronger than current adoption.
More than 40% of miners that have not entered the sector said they are actively considering AI or high-performance computing. Around 10% reported no plans to pursue either business. Neumueller cautioned that interest alone should not be viewed as a firm commitment.
Many investors now value mining companies for their access to land and electricity, not only their Bitcoin production. Several listed miners have announced AI hosting deals or conversion plans. Cambridge’s survey suggests those projects remain limited across the wider industry.
Mining companies cited stronger financial stability and broader revenue opportunities as key reasons for considering diversification. High capital costs remained the largest barrier. Many operators also preferred to keep their primary focus on Bitcoin mining.
Turning a Bitcoin mining site into an AI data centre requires major investment. AI facilities need advanced cooling systems, stronger networking, reliable infrastructure and higher engineering standards. Suitable land and electricity alone are often not enough.
Despite those challenges, almost nine out of ten survey participants expect AI and high-performance computing to become more common across the mining sector in the coming years. Many also see opportunities in power generation and grid services, reflecting the growing value of reliable electricity access.
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