AI Could Consume More Power Than Bitcoin by the End of 2025: What Does This Mean?

How much energy does AI really consume? Will AI surpass Bitcoin’s massive electricity use soon? These are common questions for anyone curious about the environmental impact of emerging technologies. Recent research forecasts that artificial intelligence could soon demand nearly half of all electricity used by data centers worldwide—potentially overtaking Bitcoin mining by the end of 2025. This projection underscores a critical trend: while AI technologies continue improving in efficiency, their rapid growth drives soaring power consumption that cannot be ignored.

A study by Alex de Vries-Gao, a PhD candidate specializing in environmental impacts of technology, reveals that AI already accounts for up to 20% of data center energy usage. This figure is difficult to measure precisely, as leading tech companies rarely disclose detailed energy data tied to their AI models. Instead, researchers analyze energy demand by tracking production and supply chains of AI-specific computer chips. Despite gains in hardware efficiency, AI’s increasing computational needs—fueled by advancements like ChatGPT—are accelerating electricity consumption at an unprecedented rate.

The environmental footprint of AI is especially concerning because of its "bigger is better" mentality. AI models are growing larger and more complex to deliver better performance, which means higher energy requirements. De Vries-Gao draws parallels to cryptocurrency mining, where competition pushed energy use sky-high before some networks switched to more sustainable protocols. Unlike Ethereum’s move to proof-of-stake reducing its energy drain, AI’s hunger for power is intensifying as it penetrates diverse sectors from business automation to creative industries.

As AI demand grows, the implications for global energy consumption and climate change become increasingly urgent. Data centers, already massive electricity consumers, could face even greater loads—driving up operational costs and carbon emissions. This situation opens opportunities for innovation in energy-efficient AI hardware, renewable-powered data centers, and policies encouraging greener AI development. Consumers and industry watchers should stay informed about how AI’s energy appetite evolves and its ripple effects on energy markets, tech investments, and sustainability goals.

In conclusion, AI's energy consumption is no longer a niche concern but a central challenge in technology’s environmental future. Monitoring and mitigating AI's electricity use will be crucial to balancing technological progress with climate responsibility. With AI predicted to consume more power than Bitcoin by 2025, understanding this trend is essential for anyone interested in the intersection of technology, energy, and sustainability.