⚖️ Senators Propose "Clean Cloud Act of 2025" to Regulate Crypto Mining and AI Data Centers
📜 Democratic Senators Sheldon Whitehouse and John Fetterman have introduced the "Clean Cloud Act of 2025," aiming to impose regional emissions limits and financial penalties on cryptocurrency mining operations and artificial intelligence (AI) data centers that exceed environmental standards. The bill seeks to amend the Clean Air Act to address the increasing energy consumption associated with digital infrastructure.
🔋 It requires facilities using over 100 kilowatts of power to report annually on their electricity sources, consumption data, and emissions intensity. The legislation highlights that U.S. data centers could account for 12% of national electricity use by 2028 due to the rising demand for AI and cryptocurrency mining. Bitcoin mining's U.S. network hashrate increased by 739% between 2020 and 2022, with a growing reliance on fossil fuel plants to power these operations.
📉 The bill sets emissions baselines for each U.S. region, which will decline annually until reaching zero by 2035. Electric utilities and facilities that exceed these limits would incur fees starting at $20 per excess kilowatt-hour in 2026, adjusted yearly for inflation. These funds would be allocated to clean energy projects, consumer energy rebates, and program administration.
🌱 Facilities powered entirely by zero-carbon energy would be exempt from these fees. The legislation also mandates public disclosure of facility-level energy data while safeguarding proprietary consumption figures. It has been referred to an unnamed Senate committee and includes a severability clause to maintain its provisions if parts are invalidated.
⚠️ However, the bill's emissions fees, strict timelines, and compliance costs could deter investment in experimental technology, limit the scalability of startups, and prioritize regulatory adherence over research and development (R&D). This could disproportionately burden smaller firms while favoring established players with the resources to meet the standards.
