US data centers are forecasted to consume a staggering 20% of the country's electricity by 2035, a dramatic rise from the current 5.9%. BloombergNEF's updated projection of 106 GW demand represents a 36% increase compared to its own April 2025 estimate of 78 GW. This surge highlights the intensifying strain on America's power grid caused by the rapid expansion of AI and crypto mining activities.
Currently, data centers operate around 40 GW capacity, accounting for roughly 3.5% to 4% of national electricity use. Under BNEF's base case, their share could reach 8.6% by 2035, while high-growth scenarios modeled by the Electric Power Research Institute (EPRI) suggest a range between 10% and 20%, depending on the scale of cryptocurrency mining combined with AI workloads.
The crypto mining sector is quietly repositioning itself at the heart of this transformation. Bitcoin miners like Core Scientific and Riot Platforms are collaborating with tech giants such as AWS and Google to convert mining facilities into AI infrastructure. Approximately 6 GW of power capacity is currently held by Bitcoin miners, with pipelines extending to 12 GW by 2027. Analysts predict that as much as 20% of this capacity could pivot towards AI workloads by the end of that year.
Texas offers a clear example: ERCOT data shows data centers account for about 90% of large-load demand applications, with many crypto mining sites being repurposed for AI. Such shifts indicate a broader market recalibration, where energy-intensive crypto operations are adapting to meet the escalating demand for AI compute power.
For crypto investors, this evolution signals a potential pivot from traditional mining to AI hosting services. Core Scientific's emergence from bankruptcy and partnership with AI cloud firm CoreWeave is emblematic of this trend, reflecting how crypto companies are leveraging their infrastructure to capture new growth opportunities.
This material is informational and not financial advice.
