Electricity prices in the U.S. are set to rise next year as power demand surges, driven by one particular industry.
What's happening?
As Forbes reported, the Energy Information Administration said the increase will be "led by the West South Central region, which includes Texas, as electricity demand from data centers and cryptocurrency mining facilities in that region increases."
In its Short-Term Energy Outlook, the agency said U.S. wholesale power prices will climb to around $51 per megawatt-hour in 2026. That's an 8.5% increase from this 2025's $47 per MWh, which was 23% higher than the rate in the previous year.
The EIA noted that rising demand from data centers and cryptocurrency mining facilities is driving much of this growth, particularly in Texas, where new AI and computing operations continue to expand.
Why is this concerning?
According to Earthjustice, cryptocurrency mining is an energy-intensive process that uses millions of computing machines to solve complex mathematical problems. Crypto miners are rewarded with cryptocurrency when they successfully solve a problem.
As cryptocurrency prices continue to rise, miners will try to increase their chances of earning more by using faster, more powerful computers.
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Cryptocurrency mining can pose risks to people and the environment. As crypto miners run more powerful machines to mine more cryptocurrency, they also increase their reliance on energy that contributes to air pollution.
A study found that crypto mining created the most harmful carbon pollution in the U.S., Russia, and China. Exposure to air pollution can cause several health risks, including heart disease, lung cancer, and pneumonia, per the World Health Organization.
Beyond air pollution, crypto mining can also contribute to noise pollution. Mining operations can also generate disruptive noise from industrial cooling systems, which can significantly affect people's health.
What can people do about the impact of cryptocurrency?
While crypto mining is often scrutinized for its environmental impact, cryptocurrency may also have potential upsides.
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Yes 👍 Some in the cryptocurrency industry say crypto mining can also support cleaner energy by partnering with renewable power projects, entering power purchase agreements with renewable energy providers, or adjusting operations based on demand.
According to the Crypto Council for Innovation, Bitcoin mining helps stabilize the energy grid by adjusting energy use based on demand and making use of excess renewable energy.
Cryptocurrency mining is finding ways to cut costs and curb its environmental impact by using renewable energy sources like solar, wind, and hydropower.
People can support the transition to clean energy by backing renewable energy projects and choosing cleaner energy options when available.
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