US Senate Bill Threatens Crypto, AI Data Centers With Emissions Fees

US Senate Bill Aims to Penalize High-Emission Crypto and AI Data Centers

A draft bill in the U.S. Senate is raising alarms in the cryptocurrency and artificial intelligence sectors, as lawmakers seek to impose new emissions-based penalties on high-powered data centers. The proposed legislation, known as the Clean Cloud Act, was introduced by Senate Democrats Sheldon Whitehouse and John Fetterman, and is still in the early stages of consideration, Bloomberg reported on April 11.

The bill mandates that the Environmental Protection Agency (EPA) establish emissions performance standards for data centers and crypto mining facilities with an installed IT nameplate power of over 100 kilowatts. The emissions limits would be based on the carbon intensity of regional power grids and require an 11% annual reduction in emissions.

Facilities exceeding the EPA’s threshold would face fines starting at $20 per ton of CO2 equivalent, increasing annually by inflation plus an additional $10.

Crypto and AI in the Crosshairs

The legislation comes amid growing scrutiny of the energy consumption required to power the digital economy, particularly blockchain and AI infrastructures. According to the U.S. Senate Committee on Environment and Public Works, data centers could account for up to 12% of America’s electricity demand by 2028.

New US draft bill would penalize AI, crypto data centers for power consumption. Source: Matthew Sigel

Morgan Stanley estimates the global data center sector could generate 2.5 billion metric tons of CO2 emissions by 2030 if current growth rates continue. The lawmakers behind the bill argue that unchecked expansion threatens both environmental targets and household energy affordability.

However, critics warn the Clean Cloud Act could disproportionately target crypto miners and tech innovators. Matthew Sigel, head of research at VanEck, labeled the proposal a “losing ‘blame the server racks’ strategy” in an April 11 post on X, suggesting it scapegoats infrastructure without offering viable alternatives.

A Shifting Landscape for Bitcoin Miners

The bill’s timing is critical, as Bitcoin miners are undergoing a major shift in strategy. Faced with falling crypto prices and the recent halving of Bitcoin’s block rewards, companies such as Galaxy Digital, CoreScientific, and Terawulf are repurposing their infrastructure to provide high-performance computing (HPC) services for AI model training and inference.

“Miners are diversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high-performance computing,” analytics firm Coin Metrics noted.

While income for mining companies began to stabilize in early 2025, this recovery remains fragile. A combination of aggressive emissions penalties and ongoing global trade tensions could disrupt their newly formed hybrid business models.

Comparison of miners’ AI-related contracts. Source: VanEck

Trade Wars and Regulatory Conflicts Loom

The Clean Cloud Act may also clash with the U.S.’s current direction on technology policy. President Donald Trump has rolled back a 2023 executive order from the Biden administration that established AI safety standards. Trump has publicly pledged to make the U.S. the “world capital” of both AI and crypto, a vision that could be undermined by strict emissions regulations.

Global trade tensions further complicate the picture. “Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks,” said Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance.

He added that “in moments of global uncertainty, the infrastructure supporting crypto—not just the assets themselves—can become collateral damage.”

What Comes Next?

As the Clean Cloud Act awaits further debate in the Senate, stakeholders from both the crypto and AI sectors are closely watching. The outcome could set a precedent for how the U.S. balances technological innovation with environmental responsibility. Whether the legislation becomes law or gets reworked remains to be seen, but its introduction marks a significant moment in the ongoing debate over energy, innovation, and regulation in the digital age.