This page is a cost comparison, not a profit projection. Mining revenue depends on BTC price and network difficulty, which fluctuate independently of electricity rates.
How Much Does Electricity Cost to Mine Bitcoin per kWh?#
Bitcoin mining electricity costs $0.07 per kWh all in at Fathom Labs' Southeast Texas hosting facility, against a US residential average of 18.3 cents per kWh in July 2026 (EIA), so a typical 3.5 kW miner running 24/7 uses about $176 of power a month hosted versus about $460 at home. The table below compares hosting and industrial rates, which vary by contract.
| Segment | Typical rate | Notes |
|---|---|---|
| US residential electricity | ~$0.12 to $0.20/kWh * | EIA state level averages vary widely |
| Competitive professional hosting (industry range) | ~$0.065 to $0.08/kWh * | ERCOT Texas, competitive US markets, all in |
| Fathom Labs: Southeast Texas | $0.07/kWh all in | No cooling surcharge, no management fee |
| Industrial / large scale (direct utility) | ~$0.04 to $0.06/kWh * | Direct utility or wholesale contracts, hyperscale operators |
* Rates marked with an asterisk should be verified against a live source before citing. Rates vary by provider, contract size, and terms. US residential average per EIA Electric Power Monthly (July 2026 data, released September 24, 2026); industry and industrial rates based on publicly reported 2026 pricing and competitive intelligence.
Data license: CC BY 4.0. Please cite Fathom Labs.
Why Electricity Cost Is the #1 Profitability Lever#
In bitcoin mining, most cost variables are outside your control: BTC price, network difficulty, pool fees, and hardware depreciation are all external. Electricity rate is the single largest expense you can directly influence.
The calculation below compares monthly electricity costs for a single Whatsminer M70S (264 TH/s, 13.5 J/TH; about 3,140 to 5,000 W depending on power mode), using a typical 3.5 kW draw, at the US residential average of 18.3 cents per kWh (EIA, July 2026) versus the $0.07/kWh all in rate at Fathom Labs:
Example power draw:~3.5 kW (typical draw)
Monthly electricity, $0.183/kWh:~$461
Monthly electricity, $0.07/kWh:~$176
Monthly cost difference:~$285 per miner
Pure electricity cost calculation only, not revenue or profit. Mining revenue depends on BTC price and network difficulty, which change independently. Monthly electricity = 3.5 kW (typical example draw) × 720 h × rate.
Model revenue and costs at different electricity rates with live BTC prices using our bitcoin mining profitability calculator.
What "All In" Means vs. Raw kWh Rate#
When comparing hosting providers, the distinction between an all in rate and a raw electricity rate matters: a low raw rate with add ons can end up more expensive than a higher all in rate.
Typically covered by a genuine all in rate:
- +
- Electricity (direct power to the machine)
- +
- Cooling infrastructure overhead (PUE)
- +
- Rack space and power distribution
- +
- Network connectivity
- +
- 24/7 NOC monitoring and troubleshooting
Not included in any hosting rate (confirm separately):
- ×
- Pool fees (typically 1 to 2% of mining revenue, charged by your mining pool)
- ×
- Demand charges (some utilities bill for peak power draw; may be passed through by the facility)
- ×
- Transmission and delivery (some providers quote generation cost separately from delivery charges)
The $0.07/kWh rate at Fathom Labs genuinely covers electricity, cooling, racking, network, and monitoring with no separate line items. It applies to miners purchased from Fathom Labs; miners bought elsewhere are hosted at $0.08/kWh with a minimum of 10 units per order. Pool fees (charged by your chosen pool) and hardware purchase are excluded, as with any hosting arrangement. Full terms are on our $0.07/kWh bitcoin mining hosting page.
Regional Rate Differences: US and Texas Grid Context#
Electricity rates vary significantly across US states. Hawaii and California residential rates frequently exceed $0.25/kWh, making home mining impractical. Some lower rate states may fall below $0.10/kWh, but still typically exceed the best professional hosting rates.
Much of Texas stands out because of ERCOT. The ERCOT (Electric Reliability Council of Texas) grid covers most of the state, is largely deregulated, and is independent from the Eastern and Western US interconnects. This structure allows large industrial power consumers to negotiate rates directly with generators and retailers. Texas' substantial wind and solar capacity further pushes down wholesale electricity prices, making it one of the most rate competitive bitcoin mining markets in the US. A smaller share of Texas, including Fathom Labs' Southeast Texas facility, is served by utilities like Entergy Texas that sit outside ERCOT on the MISO grid instead.
Fathom Labs' Southeast Texas facility is served by Entergy Texas rather than ERCOT, and charges a flat $0.07/kWh all in rate, fixed for the contract term regardless of which grid delivers the power. To learn more or get a hosted mining quote, see our Southeast Texas facility page or contact us for a hosted quote.
Where Is the Cheapest Electricity for Bitcoin Mining?#
The US states with the cheapest electricity for bitcoin mining include Louisiana, Washington, Idaho, Nebraska, and Texas, where industrial power runs roughly $0.05 to $0.10/kWh. But even in those states, residential rates typically exceed professional hosting rates. For most miners the cheapest per kWh cost isn't found by picking a state; it's reached through professional hosting tied to an industrial power contract, such as Fathom Labs' $0.07/kWh all in rate in Southeast Texas, fixed for the contract term, with no performance fee and no revenue share.
Home vs. Hosted Electricity Math#
Monthly electricity cost for a single Whatsminer M70S (about 3,140 to 5,000 W depending on power mode; a typical 3.5 kW draw is used here) running 24/7 across rate scenarios:
| Scenario | Rate | Monthly elec. (3.5 kW) |
|---|---|---|
| US home (low rate state) | $0.12/kWh * | ~$302 |
| US home (national average) | $0.183/kWh (EIA, July 2026) | ~$461 |
| US home (high rate state) | $0.20/kWh * | ~$504 |
| Fathom Labs hosted | $0.07/kWh all in | ~$176 |
Calculated as 3.5 kW × 720 h × rate. * Home rates marked with asterisk should be verified against EIA state level data. Electricity cost estimates only; excludes cooling overhead, insurance, and other home mining costs.
For a full home vs. hosted breakdown including hidden home mining expenses like cooling, insurance, and maintenance, see Home vs. Hosted Cost. For the full hosting costs topic hub, see Bitcoin Mining Hosting Costs.