Senate Bill Targets Crypto Mining and AI Infrastructure with Climate Penalties

A new U.S. Senate proposal could have far-reaching implications for crypto miners and AI data centers, according to a recent report by Bloomberg.

The Clean Cloud Act, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, aims to curb the rising power demand from data-heavy industries and prevent surging energy costs for American households. The bill would impose emissions limits and financial penalties on facilities with over 100 kilowatts of installed IT capacity.

The EPA would be tasked with setting an emissions performance standard, which would require a regionally-based reduction of 11% annually. 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, while proponents see it as a necessary step to address the growing environmental impact of data centers. The proposal may also clash with former President Donald Trump's deregulatory stance, which included repealing a 2023 Biden executive order on AI safety.