Bitcoin mining’s electricity consumption continues to surge, yet the sector’s carbon footprint is increasing at a slower rate, according to new findings from the Cambridge Centre for Alternative Finance. The research highlights a shift in Bitcoin mining’s energy mix, with hydropower now ranking as the largest single source and low-carbon power comprising nearly 60% of total energy use.
Bitcoin mining’s electricity use grows, emissions rise more slowly
Cambridge researchers estimated that Bitcoin’s annual electricity usage reached approximately 190 terawatt-hours by December 2025, climbing from 138 terawatt-hours recorded in June 2024. The data was presented by Alexander Neumueller of the Cambridge Centre for Alternative Finance at the Energy Investors Forum in Dallas ahead of the release of their annual Digital Mining Industry Report.
Despite the sharp increase in electricity demand, associated carbon emissions grew less dramatically. Emissions were estimated to rise from 40 million metric tons of carbon dioxide equivalent to 48 million metric tons over the same period—a growth in emissions of about 20%, compared to a 38% increase in electricity usage.
Rising electricity demand from new mining machines drove overall consumption higher. However, the shift toward hydropower and other low-carbon sources allowed emissions to rise at a slower pace than the electricity required.
This trend reflects ongoing improvements in mining hardware efficiency and changes in sector practices that prioritize cleaner energy sources. Hydropower moved ahead of natural gas as the dominant power source for global Bitcoin mining operations.
Hydropower dominates clean energy mix in crypto mining
Low-carbon energy sources now account for 59.4% of total electricity used in Bitcoin mining, up from 52.4% cited in Cambridge’s earlier research. Hydropower has taken the lead, with prominent mining operations emerging in hydro-rich countries such as Ethiopia. New capacity from infrastructure projects like the Grand Ethiopian Renaissance Dam has attracted miners looking for reliable, lower-cost power.
The research draws on survey responses representing just over half of the global Bitcoin network hashrate, with improved participation compared to previous years. Cambridge noted that broader geographic coverage in the survey, including increased data from emerging mining hubs, has influenced reported results regarding energy mix and sourcing.
| Metric | June 2024 | December 2025 |
|---|---|---|
| Electricity usage (TWh) | 138 | 190 |
| CO2 emissions (million tons) | 40 | 48 |
| Low-carbon energy share | 52.4% | 59.4% |
| Largest power source | Natural gas | Hydropower |
Some mining operators cite greater hardware efficiency, but the total surge in network activity has outweighed these gains, leading to overall higher energy demand.
Notably, Ethiopia’s rise as a mining destination has been driven by new hydropower resources, offering an alternative to traditional mining hubs and supporting the industry’s shift toward cleaner operations.
Mini dictionary: Cambridge Centre for Alternative Finance (CCAF) – A research institute at the University of Cambridge focused on studying the financial sector’s transformation through alternative finance, including digital assets, blockchain, and the environmental impact of cryptocurrency mining.
Miners eye AI and high-performance computing despite slow adoption
Researchers also explored how Bitcoin miners are diversifying beyond cryptocurrency. Fewer than 10% of surveyed miners have allocated any power capacity to artificial intelligence (AI) or high-performance computing (HPC) applications as of now. Despite this, interest in expansion is widespread across the industry.
More than 40% of companies that have not yet entered the AI or HPC sector said they are actively considering a move. About 10% reported no intention to diversify in this direction, according to survey responses. Neumueller cautioned that stated interest does not necessarily indicate definite future investments.
Many mining companies consider diversification for broader revenue opportunities and financial stability, though high capital costs remain a major barrier to converting facilities for artificial intelligence or accelerated computing.
The transition to AI hosting or data centers requires substantial upgrades, including advanced cooling, improved networking infrastructure, and higher engineering standards. Most miners still prefer to concentrate on Bitcoin as their primary business model, citing existing capital commitments and a focus on core activities.
Yet, nearly 90% of all respondents expect the role of AI and high-performance computing in the mining sector to increase in the coming years. Investors are beginning to value access to surplus land and electricity as much as Bitcoin production itself, while power generation and grid services offer additional business opportunities for well-positioned companies.
Mini dictionary: High-performance computing (HPC) – The use of supercomputers and parallel processing techniques for solving complex computational problems. In the context of Bitcoin mining, HPC facilities may repurpose hardware and infrastructure for additional business lines such as AI workloads.
