As of December 2025, low-carbon energy sources accounted for 59.4% of the energy mix in Bitcoin mining. This figure rose from 52.4% in June 2024, according to preliminary data presented by Alexander Noyemuller from the Cambridge Centre for Alternative Finance (CCAF) at the Energy Investors Forum in Dallas.
Hydropower has now surpassed natural gas to become the largest single energy source for Bitcoin mining. Noyemuller attributed this shift to an expanded survey that included countries with significant hydropower capabilities, notably Ethiopia. The Hidase Dam, Africa's largest at 5,150 MW, was inaugurated on the Blue Nile in September 2025 after its turbines began operations in 2022. This inexpensive hydropower has attracted Bitcoin miners, with estimates from Hashrate Index suggesting that Ethiopia will contribute about 2.6% of the global hash rate by January 2026.
Noyemuller shared these insights as part of the announcement for the second edition of the Cambridge Digital Mining Industry Report, which is expected to be released later in 2026. The data was gathered from a survey of companies controlling over half of the global Bitcoin mining capacity. While the number of respondents has increased compared to the first edition, the 59.4% figure reflects the energy mix of the sample rather than the entire industry.
Emissions Lag Behind Consumption Growth
During the same 18-month period, the network's annual energy consumption surged by 38%, rising from 138 TWh to 190 TWh. In contrast, emissions increased at nearly half the rate, climbing 20% from 40 million to 48 million tons of CO₂ equivalent.
Noyemuller explained that this gap is due to a cleaner energy mix—each kilowatt-hour is now less polluting. However, the rise in low-carbon energy sources has not fully offset the increase in consumption, leading to an overall rise in absolute emissions within the industry.
Miners Hesitant to Shift Towards AI
The second part of the CCAF survey explored miners' plans for engaging in AI computations. Approximately 10% of respondents have already allocated some of their capacity to artificial intelligence and high-performance computing (HPC). More than 40% are considering this option, while 10% have opted against it.
A year earlier, the industry expressed more assertive intentions. In the 2025 survey, 64% of respondents identified business diversification, particularly into AI, as their primary risk management strategy, surpassing hedging electricity costs and expanding data center locations.
“The intention to explore the issue does not equate to a commitment to deploy capacity,” Noyemuller stated.
The gap between interest and actual projects is significant for investors since publicly traded miners are increasingly evaluated based on their access to land and electricity rather than solely on their mining output. Some firms have announced contracts for AI hosting or site conversions, but overall industry deployment remains limited, Noyemuller emphasized.
Survey respondents cited financial stability and strengthening market positions as key reasons for diversification. Major obstacles included capital expenditures and a reluctance to lose focus on mining.
Converting a site is more complex than just replacing equipment. ASIC miners can operate in simple buildings but face interruptions and shutdowns when electricity prices rise. AI servers require advanced networks, cooling, and high reliability. Merely connecting to the power grid does not ensure the availability of fiber optics, water, engineering solutions, or tenants with acceptable credit histories.
Despite this, nearly nine out of ten respondents anticipate that diversification into AI and HPC will become a key industry trend in the coming years. Following closely in frequency of mention are vertical integration in generation and services for energy grids. All three scenarios hinge on a single resource, noted Noyemuller.
“Electricity is becoming a scarce commodity, and many miners already have access to it,” he explained.
In June, researchers from Stanford University pointed out that large Bitcoin miners have accelerated the transition of energy sites to data centers for AI and high-performance computing.