Across the United States, rising electricity bills are sparking protests against new data centers. Politicians are proposing new rules on energy-intensive industries, but a report argues they are targeting the wrong culprit. The analysis states that while public anger focuses on Bitcoin mining, the real grid pressure comes from rapidly expanding AI data centers, which require constant power unlike flexible Bitcoin operations.
A wave of local protests is targeting data centers from Northern Virginia to Texas, with residents blaming the digital economy for higher power bills. In response, politicians are rushing to propose new regulations and taxes on energy-hungry industries.
However, a report from crypto investment firm Paradigm argues this focus is misplaced. The firm contends that while Bitcoin is often blamed because it is “unpopular and misunderstood,” the actual grid strain is increasingly caused by fast-growing AI data centers.
The data reveals a significant disparity in energy use. Bitcoin mining consumes approximately 0.23% of global electricity and produces around 0.08% of global emissions.
In contrast, AI data centers are projected to double or triple their energy consumption by 2028. The key operational difference lies in flexibility, as Paradigm noted.
“Policymakers should use bitcoin mining as a tool, not a threat. And if you’re worried about crypto having a bad impact on energy usage, these aren’t the droids you’re looking for.”
AI facilities require constant, uninterrupted power, placing steady demand on grids. Bitcoin miners, however, are uniquely flexible, frequently using excess renewable energy and shutting down during periods of high demand or high prices.
This adaptability was demonstrated in Texas, where mining operations reportedly helped reduce grid support costs by 74% in one year. The Bitcoin mining industry itself is showing signs of reduced energy pressure.
Mining difficulty has been declining since a record high in November 2025, meaning less computational power and energy is required. Meanwhile, miner revenue shows volatility, dipping from $43.00 to $37.60 in a recent 24-hour period before continuing an overall upward trend for February.
