U.S. Senate Bill Proposed to Impose Fees on Crypto and AI Data Centers
Draft Legislation Aims to Address Environmental Concerns
Recent reports indicate that a new draft bill in the U.S. Senate could impose significant fees on data centers serving blockchain networks and artificial intelligence (AI) models if they exceed federal emissions targets. The legislation, known as the Clean Cloud Act, is spearheaded by Senate Democrats Sheldon Whitehouse and John Fetterman and primarily focuses on the environmental impacts associated with rising energy demand linked to these technologies.
According to a Bloomberg report released on April 11, the Clean Cloud Act seeks to establish stricter regulations on energy consumption from data centers and cryptocurrency mining facilities. Specifically, the bill mandates that the Environmental Protection Agency (EPA) set an emissions performance standard for any data center or crypto mining operation that utilizes more than 100 KW of installed IT nameplate power. The performance standard would be tailored to the emissions intensity of local energy grids, with a target of achieving an 11% reduction in emissions annually.
Financial Implications of the Proposed Bill
As part of the proposed legislation, penalties for emissions that surpass the established standards would begin at a charge of $20 per ton of CO2 equivalent (CO2e), with this penalty expected to increase each year in line with inflation, plus an additional $10. This initiative has emerged in response to the growing concern that electricity consumption from these operational sectors is projected to account for up to 12% of total U.S. power demand by 2028. In a noteworthy observation, a minority blog post on the U.S. Senate Committee on Environment and Public Works highlighted that data centers’ power demands have surged significantly, outpacing the expansion of carbon-free electricity. According to research from Morgan Stanley, this rapid growth in data centers could result in an estimated 2.5 billion metric tons of CO2 emissions globally by the end of the decade.
Matthew Sigel, head of research at VanEck, criticized the proposed bill, suggesting that it may unfairly target Bitcoin miners and similar operations, characterizing it as a "Losing ‘Blame the Server Racks’ Strategy."
Tensions with Existing Policies
The legislation may also conflict with existing U.S. policy under former President Donald Trump, who previously repealed a 2023 executive order from former President Joe Biden that set standards for AI safety. Trump has consistently voiced his ambition for the United States to become the leading global hub for AI and cryptocurrency innovation.
As Bitcoin miners have begun to pivot towards supplying high-performance computing (HPC) power for AI models, such diversification is seen as a strategic response to evolving market dynamics, especially given the industry’s challenges stemming from declining cryptocurrency prices post-Bitcoin’s recent halving.
Market Stability and Future Challenges
Despite the current market pressures, income for some Bitcoin miners exhibited signs of stabilization during the first quarter of 2025. However, cryptocurrency executives have expressed concerns that ongoing trade wars could pose significant obstacles for miners and complicate their business models. Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, noted, "Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks."
As the situation develops, the implications of the Clean Cloud Act could significantly impact the operational landscape for both cryptocurrency miners and AI data centers, making the outcomes of this proposed legislation particularly crucial for industry stakeholders.
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