A new bill has been introduced in the U.S. Senate to address the environmental impact of bitcoin mining and artificial intelligence (AI) data centers.
Dubbed the Clean Cloud Act, the legislation is being led by Senators Sheldon Whitehouse (D-RI) and John Fetterman (D-PA). If passed, the bill would set carbon emissions standards for energy-guzzling computing facilities across the country.
The Clean Cloud Act is aimed at reducing pollution caused by the increasing power demands of bitcoin miners and AI data centers, which the senators believe are putting more and more strain on the nation’s power grid.
This is despite numerous studies and reports that show bitcoin mining actually helps stabilize power grids and drive the development of green energy facilities.
Related: Bitcoin’s Net-Positive Environmental Impact | List of Recent Studies
The bill would require the U.S. Environmental Protection Agency (EPA) to set regional carbon emissions caps for data centers and bitcoin mining operations with more than 100 kilowatts (kW) of capacity.
These caps would be based on local electricity sources and would decrease by 11% every year until 2035.
Facilities that go over the limit would face fines starting at $20 per ton of CO₂ emissions, increasing by $10 plus inflation every year. The fines can’t be passed on to consumers, a move to protect electricity ratepayers.
Companies would also have to submit annual reports on their electricity use and energy sources so the EPA can track their emissions.
The announcement on the Senate’s website says, “Energy-hungry data centers and cryptomining facilities are overloading our already strained power grid, driving up consumers’ electricity costs, making it harder for Americans to power their homes and businesses, and spiking fossil fuel emissions.”
It’s interesting to note that a similar event in Norway resulted in very different outcomes than the Senators said. The shutdown of a bitcoin mining farm in Norway last year caused a steep hike in electricity prices for the town’s residents.
Fetterman added, “Fighting to keep the United States at the cutting edge of AI technology and protecting our natural resources for our kids and grandkids are not mutually exclusive goals.”
The bill also looks to help the public. 25% of the fine revenue would go to low-income families for energy costs. The rest would go to clean energy projects like long-duration storage and clean power generation firms.
Not everyone is happy with the bill though. Matthew Sigel, Head of Research at VanEck, calls it a “blame the server racks” in an X post.
There’s also concern that the bill will clash with current political priorities. President Donald Trump wants the U.S. to be the “world’s most significant bitcoin mining power” and his sons are reportedly launching their own bitcoin mining company.
Related: Trump Sons Launch “American Bitcoin” In Partnership with Hut 8
The Clean Cloud Act has only Democratic support so far and may face opposition from Republicans who support the AI and Bitcoin industries.
