Senate Bill Targets Crypto Miners and AI Infrastructure with Climate Penalties

The U.S. Senate has proposed the Clean Cloud Act, which targets data centers and crypto miners for their high energy consumption. Introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, the bill aims to curb rising power demand from data-heavy industries and prevent surging energy costs for American households.

The legislation would impose emissions limits and financial penalties on facilities with over 100 kilowatts of installed IT capacity. The EPA would set an emissions performance standard based on region, requiring 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.

Crypto miners are increasingly pivoting towards AI infrastructure to offset declining crypto revenues. Major mining firms like Galaxy, CoreScientific, and Terawulf are already integrating AI services into their operations. Critics argue the bill unfairly singles out crypto mining, labeling it a 'Losing 'Blame the Server Racks' Strategy.'