Hardware Intensity of Crypto Mining vs AI Generation
Executive summary Crypto mining based on proof‑of‑work (PoW) and modern AI generation both depend on highly specialized compute infrastructure, but they concentrate hardware and energy in very different ways. Bitcoin mining alone consumed on the order of 120–175 TWh per year in 2023–2025, roughly 0.2–0.9% of global electricity use, with more recent Cambridge estimates around 138 TWh and 0.5% of global demand. Global data centres, by contrast, consumed about 415 TWh in 2024 (around 1.5% of world electricity), with the International Energy Agency (IEA) projecting a rise to about 945 TWh by 2030 and identifying AI as the main driver of that growth. On a per‑operation basis, PoW mining deliberately burns energy in an open‑ended hash race, while AI hardware delivers orders of magnitude more useful computation per joule but is deployed across rapidly scaling fleets of accelerators.[1][2][3][4][5][6][7][8] The hardware intensity of PoW crypto is characterized by highly application‑specific ...