Senate Bill Targets Crypto Mining and AI Infrastructure with Climate Penalties
A new U.S. Senate proposal, the Clean Cloud Act, threatens to impose climate penalties on crypto mining and AI infrastructure. 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 proposed legislation would task the EPA with setting emissions performance standards for facilities with over 100 kilowatts of installed IT capacity. These standards would be regionally based and require an 11% annual emissions reduction. Facilities 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.
Critics argue the bill unfairly singles out crypto mining, labeling it a 'Losing 'Blame the Server Racks' Strategy.' Industry leaders warn that ongoing trade tensions and aggressive tariffs could further disrupt operations, making any recovery fragile. The proposal also risks clashing with former President Donald Trump's deregulatory stance.