Electricity prices in the U.S. are poised for a significant increase next year, amplifying concerns among consumers and businesses alike. This shift is largely attributed to a surge in power demand from an industry gaining traction rapidly—cryptocurrency mining and data centers.
What’s Happening?
According to a recent report from Forbes, the Energy Information Administration (EIA) has forecasted that wholesale power prices in the U.S. will rise to around $51 per megawatt-hour (MWh) in 2026. This marks an 8.5% increase from the previous year’s average of $47 per MWh, which in itself was already up 23% compared to 2024. The primary driver behind this upward trend in prices is an escalating electricity demand from data centers and cryptocurrency mining operations, particularly concentrated in the West South Central region, which includes Texas. The state is experiencing a boom in AI and computing operations, contributing to the mounting power needs.
Why is This Concerning?
As Earthjustice highlights, cryptocurrency mining is an energy-intensive process that requires vast networks of computing machines to solve complex mathematical equations. Miners earn cryptocurrency as a reward for solving these problems, but this process demands a colossal amount of energy.
With rising cryptocurrency prices, miners often seek to enhance their equipment, opting for faster, stronger computers to maximize their earnings potential. However, this escalation has ramifications beyond just energy consumption. It amplifies the demand for electricity, consequently contributing to air pollution from power plants that rely on fossil fuels.
A recent study reported that crypto mining operations fuel some of the most severe carbon pollution globally, particularly in the U.S., Russia, and China. The world has long been aware of the health risks associated with such pollution, including heart disease, lung cancer, and pneumonia, as cited by the World Health Organization.
Moreover, noise pollution stemming from mining operations can have dire impacts on local communities. The disruptive sounds from industrial cooling systems and equipment can lead to significant health and quality-of-life issues, making it a multifaceted concern.
What Can People Do About the Impact of Cryptocurrency?
While cryptocurrency mining is often criticized for its detrimental environmental effects, there’s a growing discourse around its potential benefits. Some stakeholders in the cryptocurrency industry assert that mining can actually bolster advancements in cleaner energy initiatives. For instance, miners can partner with renewable energy projects or engage in power purchase agreements with renewable energy providers.
The Crypto Council for Innovation further emphasizes that Bitcoin mining may help stabilize energy grids by adjusting their power usage during periods of high demand and leveraging excess renewable energy. This dual role could pave the way for cryptocurrency mining to pivot towards more sustainable energy sources, such as solar, wind, and hydropower.
To facilitate a shift toward cleaner energy, individuals can support renewable energy initiatives and opt for cleaner energy options whenever available. Activism and advocacy for local renewable energy projects play an essential role in promoting the transition to a greener future.
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