Senate Democrats Sheldon Whitehouse and John Fetterman are taking the lead on a similar draft bill in the US Senate. Altogether, this bill addresses the environmental footprint of increasing energy use and helps shield families from skyrocketing energy expenses. The Clean Cloud Act targets data centers serving blockchain networks and artificial intelligence models, potentially imposing fees if they surpass federal emissions targets. This action follows increasing outrage over the massive energy usage of data centers and crypto mining facilities.
The bill requires the Environmental Protection Agency (EPA) to establish an emissions performance standard. This is especially true when it comes to data centers and crypto-mining facilities with more than 100 KW of installed IT nameplate power. This standard would establish a regional, grid-wide floor on emissions intensities, requiring at least an 11% annual reduction target.
By 2028, data centers are projected to account for up to 12% of the US electricity demand growth. This has huge implications for how we consume and distribute power nationwide. As a result of this rapid expansion, CO2 emissions from aviation will increase dramatically. By the end of the decade, we’ll be looking at 2.5 billion metric tons more emissions globally.
The legislation as written would implicitly target Bitcoin (BTC) miners and similar operations with high energy demands. Penalties for failing to meet the emissions standard would start at $20 per ton of CO2e. Each year, that figure would be indexed to inflation, plus an additional $10.
Bitcoin miners were hit with a double whammy in 2024. Declining crypto prices have upended their business models, which were in dire straits post-Bitcoin network’s recent halving. Consequently, Bitcoin miners are making the move to serve high-performance computing (HPC) demand to train and run AI models.
Surging power demand from cryptominers and data centers is outpacing the growth of carbon-free electricity. - US Senate Committee on Environment and Public Works website
The Clean Cloud Act still needs to pass in the Senate. During the administration of President Donald Trump, the US repealed a 2023 executive order. This executive order, issued by then-President Joe Biden, codified standards of AI safety. How the legislation would work The legislation would be a direct contradiction to the US’s current policy under President Donald Trump.
