Senate Bill Threatens Crypto Mining and AI Infrastructure With Climate Penalties

A new U.S. Senate proposal could spell trouble for crypto miners and AI data centers. The Clean Cloud Act, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, seeks to impose emissions limits and financial penalties on data centers.

Those include powering blockchain and artificial intelligence models that exceed federally set environmental benchmarks, according to an April 11 report from Bloomberg.

The bill hasn't passed yet but comes as Bitcoin mining firms increasingly pivot toward AI infrastructure, leveraging their high-performance computing (HPC) setups to offset declining crypto revenues. Major mining firms like Galaxy, CoreScientific, and Terawulf are already integrating AI services into their operations.

Under the proposed legislation, the EPA would be tasked with setting an emissions performance standard for facilities with over 100 kilowatts of installed IT capacity. These standards would be regionally based and would require an 11% annual emissions reduction.

Any facility exceeding these limits would face penalties starting at $20 per metric ton of CO2e, with annual increases based on inflation plus an additional $10 per ton. The bill aims to curb the rising power demand from data-heavy industries and prevent surging energy costs for American households.