Senate Bill Targets Crypto Mining and AI Infrastructure with Climate Penalties

A new US Senate proposal, dubbed the Clean Cloud Act, could pose significant challenges for crypto miners and AI data centers. Introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, the bill aims to impose emissions limits and financial penalties on data centers that exceed federally set environmental benchmarks.

The proposed legislation would require the EPA to set an emissions performance standard for facilities with over 100 kilowatts of installed IT capacity. These standards would be regionally based and would necessitate 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.

Critics argue that the bill unfairly singles out crypto mining, labeling it a 'Losing 'Blame the Server Racks' Strategy.' The proposal also risks clashing with former President Donald Trump's deregulatory stance, which included repealing a 2023 Biden executive order on AI safety. Trump has championed making the US the global hub for both AI and cryptocurrency.