Hydropower Overtakes Natural Gas as Bitcoin Mining Power Demand Surges 38%
The network's shift toward low-carbon energy sources comes as total electricity consumption climbs to 190 TWh.
Bitcoin mining is undergoing a significant structural shift in its energy procurement, with hydropower now surpassing natural gas as the network's primary energy source. This transition toward renewables is occurring simultaneously with a sharp increase in the total electricity required to secure the blockchain.
According to preliminary research from the Cambridge Centre for Alternative Finance (CCAF) presented at the Energy Investors Forum, the annualized electricity demand for Bitcoin mining rose to approximately 190 TWh in December 2025. This represents a 38% increase from the 138 TWh recorded in June 2024. Despite this surge in total consumption, the composition of the energy mix has evolved, with hydropower officially overtaking natural gas as the largest single energy source for mining operations.
The Push for Low-Carbon Power
This shift is driven by a combination of economic necessity and environmental pressure. Bitcoin mining is under constant scrutiny for its carbon footprint, prompting operators to seek out the cheapest possible electricity to maintain profit margins. Hydropower often provides a low-cost, scalable alternative to fossil fuels, allowing miners to reduce both their operational expenses and their carbon intensity.
The impact of this transition is evident in the broader energy data. Low-carbon power now supplies 59.4% of the reported mining mix, a notable increase from the 52.4% recorded in the previous study. This indicates that a majority of the network is now powered by sources that do not rely on traditional carbon-heavy combustion.
Environmental Trade-offs
The transition to hydropower suggests a potential decrease in the carbon intensity of each Bitcoin mined. By migrating away from natural gas, the industry is reducing its reliance on volatile fossil fuel markets and lowering the greenhouse gas emissions associated with the network's maintenance.
However, these environmental gains are partially offset by the sheer scale of the network's growth. The 38% jump in total power consumption means that while the percentage of green energy is rising, the absolute amount of electricity being drawn from the global grid is increasing rapidly. This creates a tension between the industry's improving energy efficiency and its expanding total footprint.
Future Outlook
As the network continues to grow, the industry's ability to secure additional low-carbon energy will determine its long-term sustainability. Market observers will be watching to see if the trend toward hydropower continues or if miners pivot toward other renewables, such as wind or solar, to sustain the rising power demand. For now, the CCAF data confirms that while the network is getting greener in proportion, it is also getting significantly larger.