A new bill proposed in the US Senate aims to address the environmental impact of data centers supporting blockchain networks and AI models that exceed federal emissions targets by imposing fees.
The bill, led by Senate Democrats Sheldon Whitehouse and John Fetterman, seeks to mitigate the environmental consequences of rising energy consumption while safeguarding households from increased energy expenses, as reported by Bloomberg.
Overview of the Clean Cloud Act and Response from Industry
Dubbed the Clean Cloud Act, the proposed law mandates the Environmental Protection Agency (EPA) to set emissions performance standards for data centers and crypto mining facilities with over 100 KW of installed IT nameplate power.
The standards will be based on regional grid emissions intensities, aiming for an 11% annual reduction in emissions. Additionally, the bill introduces penalties for exceeding these limits, starting at $20 per ton of CO2e, with annual increments based on inflation plus an extra $10.
An article on the US Senate Committee on Environment and Public Works website highlights, “The escalating energy demand from crypto miners and data centers is surpassing the growth of carbon-free electricity.” It predicts that data centers’ electricity consumption could represent up to 12% of the total US power demand by 2028.
Research from Morgan Stanley forecasts that the rapid expansion of data centers could generate around 2.5 billion metric tons of CO2 emissions globally by the end of the decade.
Matthew Sigel, VanEck’s head of research, views the proposed legislation as targeting Bitcoin miners and similar operations for their energy usage in what he refers to as a “Losing ‘Blame the Server Racks’ Strategy,” as mentioned in a post on X on April 11.
Furthermore, the bill could contradict US policy under President Donald Trump, who revoked a 2023 executive order by former President Joe Biden that established AI safety regulations. Trump has also expressed his ambition to position the US as the “world capital” of both AI and cryptocurrency.
Transition of Bitcoin Miners towards AI
Bitcoin miners have faced challenges in 2025 due to declining cryptocurrency prices impacting business models already affected by the most recent halving of the Bitcoin network.
Coin Metrics reports that miners are diversifying into AI-related ventures to adapt to changing market conditions. However, the Clean Cloud Act is still pending approval in the Senate.