The race for affordable, sustainable energy is intensifying as Bitcoin miners and AI data centers compete for resources, foreshadowing a possible boom in institutional investment within the crypto sector. Industry experts, including GoMining Institutional’s Jeremy Dreier, highlight this escalating rivalry as a key factor shaping the future of both mining and artificial intelligence infrastructure.
AI Data Centers Outbid Miners for Power
Leading-edge AI data centers, armed with sizable capital reserves, are outbidding Bitcoin mining companies for prime power infrastructure. This trend is pushing miners towards off-grid locations where lower costs and less competition offer potential relief—and new business opportunities. Dreier, speaking with Cointelegraph, notes that while AI facilities require robust internet and grid access, miners have the flexibility to operate in remote areas with limited connectivity.
This energy battle is transforming industry priorities. Major crypto mining firms, such as Riot Platforms and Iris Energy, are reevaluating expansion plans, with some pivoting towards AI-driven operations or cloud business models to profit from the growing demand. However, Dreier anticipates that, as institutional capital rotates into mining, public miners may quickly shift focus back to traditional Bitcoin extraction to capture new investment flows.
Institutional Investment Set to Propel Mining
Institutional capital, which has already fueled US spot Bitcoin ETF growth, is projected to surge into mining operations next. Companies and treasury firms are keen to acquire “virgin” Bitcoin—newly mined coins obtained below spot prices. Mining costs averaged $64,000 per Bitcoin in Q1 2025 and are expected to surpass $70,000 by year-end, still significantly below the market value of $119,050. This price advantage is driving increased institutional inquiries into mining infrastructure and services.
Innovations such as Block Inc.’s new mining system, which extends rig lifespans and reduces expenses, signal growing commitment to mining efficiency amid the competitive landscape.
As the contest for cheap energy heats up, Bitcoin miners and AI firms are set to reshape the landscape of digital assets and infrastructure. Institutional investment and technological innovation may pave the way for a new era of growth, bringing fresh momentum and resilience to the
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