Bitcoin mining is geographically concentrated in a small number of American regions. The reason is narrow: electricity is the dominant cost, and everything else follows from where it is cheapest.
Power is the whole cost structure
Once machines are purchased, the recurring expense is overwhelmingly electricity, with staffing and maintenance a distant second.
Because every miner runs similar hardware and earns rewards on identical terms, the difference between a profitable operation and an unprofitable one is largely the power contract.
That makes mining unusually mobile. The output is identical regardless of location, so operations move to wherever input costs are lowest.
Stranded and curtailed generation
Some generation cannot reach demand, whether because transmission is limited, the plant is remote, or output arrives when nobody is consuming it.
Wind and solar produce this situation regularly, generating at times when local demand is low and transmission out of the region is constrained.
A load that can be placed anywhere and switched off instantly is a natural buyer for that power, which is why mining and remote generation keep pairing up.
Deregulated markets make the deals possible
States with competitive wholesale electricity markets let large consumers contract directly with generators rather than buying at a regulated retail rate.
Texas is the frequently cited example, with an independent grid and a market structure that prices power dynamically by location and time.
That pricing is what lets a miner build an economic case around consuming only when power is cheap, which a flat retail tariff would not support.
Interconnection queues shape the map
Connecting a large new load to the grid requires studies and approvals that can take years, so existing interconnection capacity is a scarce asset.
Sites at retired industrial facilities are attractive precisely because the electrical infrastructure and permits already exist for heavy consumption.
This is why mining often appears in former manufacturing or aluminum smelting towns, where the substations were built for a load that has since departed.
Local factors that decide the final site
Cool climates reduce cooling cost, though the effect is smaller than the power price difference between regions and rarely determines the choice alone.
Local tax treatment, noise ordinances and community response have become real constraints, with some jurisdictions restricting operations after complaints.
Policy risk is now part of the calculation, since a favorable power contract is worth little if local rules change the terms of operating there.