Famed investor and “Shark Tank” judge, Kevin O’Leary, recently commented that artificial intelligence processing centers and Bitcoin (CRYPTO: BTC) validation efforts are “battling” for limited electricity resources across North America.
O’Leary Warns of Power Shortages in US
During an interview featured on Moneywise, O’Leary shared his insights on the energy landscape within the United States, pointing out a notable scarcity within the electrical grid.
“The huge surge in demand from AI data infrastructure is causing a real strain. We’re nearing a point where the grid simply can’t provide enough power,” O’Leary, known to many as “Mr. Wonderful,” explained.
He further elaborated that the establishment of both AI data hubs and Bitcoin mining operations presents the potential to drive up electricity costs for residents, a scenario which regulators generally try to prevent.
“There’s a significant dynamic at play here, with two powerful forces competing for the same resource,” O’Leary noted, emphasizing the intensifying energy competition between Bitcoin validation entities and advanced AI processing facilities.
See Also: Canaan Stock Sees Increase Following US Order for 50,000 Bitcoin Mining Units
AI Expected to Outpace Bitcoin Mining in Energy Usage
The Electric Power Research Institute anticipates that electricity usage by US data centers may account for up to 9% of the country’s total electricity production by 2030, which is more than double the current consumption.
Additionally, expert analyses suggest that around 20% of Bitcoin mining power capacity will be reallocated towards AI and high-performance computing applications by the close of 2027.
As a consequence, a growing number of Bitcoin miners are choosing to direct energy towards AI data centers, either modifying their present infrastructure or by selling/leasing their operational capabilities to AI companies.
CoreWeave Inc. (NASDAQ: CRWV), initially an Ethereum (CRYPTO: ETH) mining venture, has effectively transitioned into providing AI cloud-based solutions, establishing significant collaborations with Nvidia Corp. (NASDAQ:NVDA) and OpenAI.
Price Update: Currently, BTC is trading at $120,330.57, an increase of 1.16% over the last day, according to data from Benzinga Pro.
Global X Data Center & Digital Infrastructure (NASDAQ:DTCR), an ETF following the performance of data center companies, ended the day up 1.44% at $21.12 during Thursday’s standard trading hours. The ETF has climbed 27% since the beginning of the year.
Similarly, the Grayscale Bitcoin Miners ETF (NYSE:MNRS), which invests in Bitcoin mining operations, closed with a 3.39% gain, priced at $42.89. This represents a 60% gain year-to-date.
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Disclaimer: This content was generated, in part, through the use of Benzinga Neuro and subjected to review and publication by Benzinga editors.
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