Senate bill targets emissions from AI and crypto data centers

Democratic Senators Sheldon Whitehouse and John Fetterman have introduced the "Clean Cloud Act of 2025," a bill aimed at curbing carbon emissions from cryptocurrency mining and artificial intelligence (AI) data centers.

The legislation seeks to amend the Clean Air Act to address the environmental impact of these energy-intensive operations.

Under the proposed law, facilities consuming over 100 kilowatts of power would be required to report their energy usage, sources, and emissions intensity annually.

The Environmental Protection Agency (EPA) would set regional emissions baselines, which would decline annually until reaching net-zero by 2035.

Facilities exceeding these limits would face financial penalties starting at $20 per ton of carbon dioxide equivalent emissions in 2026, with fees increasing yearly based on inflation and an additional $10 increment.

Funds collected from these penalties would support clean energy initiatives, consumer rebates, and program administration.

The bill highlights the growing energy consumption of digital infrastructure in the U.S., with projections indicating that data centers could account for 12% of national electricity use by 2028.

Bitcoin mining alone has seen a significant increase in energy demand, with its U.S. network hashrate surging by 739% between 2020 and 2022.

Critics argue that fossil fuel plants are being reactivated to meet this demand, exacerbating carbon emissions.

Facilities powered entirely by zero-carbon energy would be exempt from penalties under the Clean Cloud Act.

The legislation also mandates public disclosure of facility-level energy data while protecting proprietary information.

“Energy-hungry data centers and cryptomining facilities are overloading our already strained power grid, driving up consumers’ electricity costs, and spiking fossil fuel emissions,” stated Senator Whitehouse, emphasising the strain placed on power grids by these operations.

He added that the bill aims to incentivise investment in clean energy while ensuring a net-zero grid remains achievable.

While proponents argue the legislation could drive innovation in green technologies, critics warn it may increase operating costs for smaller firms and deter investment in experimental tech.

The proposed emissions fees could also place U.S.-based facilities at a competitive disadvantage compared to regions with less stringent regulations.