Amazon's AI power deal rejection signals shift in energy access

A recent ruling by the United States Federal Energy Regulatory Commission (FERC) to block Amazon from sourcing power from Talen Energy’s Susquehanna nuclear plant in Pennsylvania underscores the increasing competition for energy between AI data centers and Bitcoin (CRYPTO:BTC) miners.

The FERC decision, according to Bloomberg, halts Amazon's ability to use power from the Pennsylvania plant to support its AI data center, reflecting how rising energy demands from AI are intensifying challenges for other industries dependent on prime energy sources.

Bitcoin mining expert Jaran Mellerud explained that AI facilities are aggressively securing power sources across the U.S. and other developed markets.

“These AI operations can easily outbid Bitcoin miners for electricity — and they are doing exactly that,” he said, noting AI’s higher revenue per kilowatt-hour advantage over Bitcoin mining.

This shift could have significant implications for Bitcoin miners, who may be driven toward regions with fewer resources and less infrastructure.

Mellerud projects that the U.S. share of the global hash rate could drop from the current 40% to under 20% by 2030 as Bitcoin miners are displaced to locations that lack AI-grade infrastructure.

The increasing power demand from AI is highlighted in a report by the Bitcoin Policy Institute, which estimates AI systems will consume 169 TWh in 2024, potentially rising to 240 TWh by 2027, outpacing Bitcoin mining’s estimated 160 TWh.

Some Bitcoin miners have started exploring AI processing at their facilities; however, crypto assets adviser Anibal Garrido noted that most mining hardware, specifically application-specific integrated circuits (ASICs), are limited to Bitcoin’s proof-of-work protocol, making them unsuitable for AI workloads.

While the FERC ruling was seen as a temporary obstacle by Constellation Energy, the situation signals a broader trend, as more tech giants, including Microsoft and Meta, also seek substantial energy sources.

FERC Chairman Willie Phillips acknowledged AI’s significance, referring to it as a “generational” opportunity for national security, emphasising the unique positioning of AI firms in the evolving energy landscape.