Senate ​bill ​Targets Data Centers, Crypto Miners Over Emissions

WASHINGTON (AP) — A proposed bill in‌ the‍ U.S.‍ senate could impose fees‍ on data centers ⁣and cryptocurrency mining⁤ operations that exceed federal emissions standards. The legislation,⁣ aimed at curbing environmental ‍impact and protecting ​consumers from ⁤rising energy costs, ​is drawing‍ scrutiny from industry experts.

Clean Cloud Act: ⁣Setting Emissions Standards

The draft legislation, known as the Clean Cloud⁣ Act, is spearheaded by Senate Democrats Sheldon Whitehouse and‍ John Fetterman, according to an ⁤April 11 report.The‌ bill would task the Environmental Protection Agency (EPA)⁣ with establishing‌ emissions performance standards for data centers and​ crypto mining ⁤facilities ⁣exceeding⁤ 100 kilowatts of ‌installed IT power.
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These standards would ‍be based on regional grid ‍emissions intensities,with a target ‍of reducing emissions by 11% ​annually. Facilities‍ exceeding​ the set standards would ⁤face ‌penalties, starting at ⁤$20 per ⁢ton of⁣ CO2e, ​with the‌ penalty ​increasing each year by inflation plus an additional $10.

Data Centers’ ⁣Growing Energy Footprint

A U.S.Senate Committee on‍ environment and Public‌ Works blog post states that ‍the increasing power​ demands from crypto miners ⁤and data centers are​ outpacing the⁢ growth of carbon-free⁤ electricity. The‍ blog post projects ⁣that​ data centers⁢ could account for up to 12% of‍ total U.S.power demand by 2028.

‌ Research‍ from Morgan ⁢stanley estimates that the ​rapid expansion of data centers ‍could generate approximately⁣ 2.5 billion metric tons⁢ of CO2 emissions globally by⁣ the end of the ​decade.

Industry Reaction and Potential Conflicts

⁤ Matthew Sigel, head of research at VanEck, suggested⁤ in an April‌ 11 ‌post that the ⁣proposed legislation specifically targets Bitcoin miners and similar⁣ energy-intensive operations.

‌ The bill’s future‍ is uncertain, especially ​given ​potential conflicts with ​previous administrations’ policies. Former President Donald Trump repealed a 2023⁣ executive order by then-President Joe‌ Biden that established AI safety standards. Trump has also ⁣stated‍ his ambition‌ to make‍ the U.S. a⁣ global leader in⁤ both AI and cryptocurrency.
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Bitcoin Miners Diversify into AI

The proposed legislation comes ‍as Bitcoin⁢ miners, including companies ⁤like⁢ Galaxy, CoreScientific, and Terawulf, are increasingly shifting toward providing⁣ high-performance​ computing (HPC) power for AI models.

⁢Bitcoin‍ miners have faced ⁣challenges in​ 2025 due to declining⁤ cryptocurrency prices, wich ⁢have impacted business models already ⁢affected⁣ by the Bitcoin network’s ‌recent halving.
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⁤⁤ Coin Metrics reports that miners are diversifying ​into AI data-center hosting to increase revenue and repurpose existing infrastructure for high-performance computing.

Trade Wars and Cryptocurrency Infrastructure

Coin Metrics indicated⁤ that miners’ incomes began‍ to stabilize ⁢in the first‌ quarter of 2025. However, cryptocurrency executives warn that ongoing ⁤trade wars could⁢ disrupt miners’ business models.

Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, said⁤ that aggressive tariffs and ​retaliatory trade policies could create obstacles⁤ for node operators,‌ validators, and other‌ core ⁢participants in blockchain networks.

In moments of global uncertainty, the ​infrastructure supporting crypto, not just the assets themselves, can become collateral damage.
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