Bitcoin Mining Energy Demand Surges as Hydropower Tops Gas

Surge in Bitcoin Mining Energy Demand

Bitcoin mining saw a significant increase in its annualized energy demand, rising by 38% to approximately 190 terawatt-hours (TWh) in December 2025, compared to 138 TWh in June 2024. This surge highlights the growing electricity consumption associated with cryptocurrency mining.

Hydropower Takes the Lead

Recent preliminary research presented by Alexander Neumueller from the Cambridge Centre for Alternative Finance revealed that hydropower has surpassed natural gas as the largest energy source for Bitcoin mining. By the end of the reported period, low-carbon power sources accounted for 59.4% of the energy mix, a rise from 52.4% in earlier estimates. The significant shift underscores the increasing reliance on renewable energy in the crypto mining sector.

Rising Emissions Amid Energy Transition

Despite the shift towards hydropower and other low-carbon sources, the total estimated greenhouse gas emissions from Bitcoin mining still increased by 20%, rising from around 40 million to 48 million tonnes of carbon dioxide equivalent. This increase indicates that while miners are using cleaner energy, higher overall electricity consumption continues to impact emission levels.

Market Influence on Mining Operations

The Energy Investors Forum in Dallas hosted the presentation of the findings, which also noted that less than 10% of surveyed miners had allocated power for artificial intelligence or accelerated computing services. While more than 40% of these miners expressed interest in exploring these opportunities, Neumueller cautioned that interest does not necessarily mean immediate implementation.

Looking Ahead: Cambridge’s Findings

The full breakdown of energy sources and a detailed methodology will be published in the 2026 Digital Mining Industry Report by Cambridge. Previous figures indicated that natural gas was the leading energy source for Bitcoin mining, accounting for 38.2% of the energy mix in prior analyses. This new report will provide a clearer view of this evolving energy landscape in the mining industry.