A US Senate bill proposes climate-related penalties (likely carbon tax or emissions limits) on cryptocurrency mining and AI data center operations.

A new U.S. Senate proposal threatens to impose significant compliance costs on crypto miners and AI data centers. The Clean Cloud Act, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, would establish emissions limits and financial penalties for data centers powering blockchain and artificial intelligence systems that exceed federally set environmental benchmarks.

Under the bill, the EPA would set an emissions performance standard for facilities with more than 100 kilowatts of installed IT capacity. These regional standards would mandate an 11% annual emissions reduction. Facilities exceeding the limits would face penalties starting at $20 per metric ton of CO2e, with annual increases tied to inflation plus an additional $10 per ton.

The proposal addresses mounting concerns about energy consumption in data-intensive industries. According to the Senate Committee on Environment and Public Works, data centers could consume up to 12% of total U.S. electricity by 2028. Morgan Stanley projects these facilities will generate approximately 2.5 billion metric tons of global CO2 emissions by 2030.

The timing is significant given recent industry shifts. Major mining firms including Galaxy, CoreScientific, and Terawulf have begun integrating AI services into their operations, leveraging their high-performance computing infrastructure to offset declining crypto revenues. According to Coin Metrics, miner revenue began to stabilize in early 2025 partly through this diversification, though the recovery remains fragile amid ongoing trade tensions and aggressive tariffs.

The bill faces criticism on multiple fronts. VanEck's head of research, Matthew Sigel, characterized it as a "Losing 'Blame the Server Racks' Strategy," arguing it oversimplifies broader energy concerns by targeting a specific industry. The proposal also risks clashing with Trump administration priorities, particularly his deregulatory approach and push to establish the U.S. as the global leader in both AI and cryptocurrency.

Though still in draft form, the Clean Cloud Act would represent a significant regulatory shift for two of the digital economy's most energy-intensive sectors.