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The Coin Rise
2025-04-12 10:10:14

Clean Cloud Act Targets Crypto and AI Data Centers: Details

A new draft bill in the U.S. Senate could significantly alter the operational landscape for blockchain miners and AI data center operators. Introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, the Clean Cloud Act aims to curb the environmental toll of surging power demands by imposing emissions penalties on facilities that exceed federal thresholds. According to a Bloomberg report dated April 11, the legislation mandates that any data center or crypto mining site with more than 100 kilowatts of installed IT capacity will need to comply with new Environmental Protection Agency (EPA) performance standards. These standards would tie emissions caps to regional grid intensities and require an 11% annual reduction in carbon output. Facilities that breach those limits could face fees starting at $20 per metric ton of CO2 equivalent, with automatic yearly increases adjusted for inflation and an extra $10. The push comes amid concerns that the expansion of AI and crypto operations is outpacing the growth of clean energy sources. A minority blog post on the U.S. Senate Committee on Environment and Public Works warns that data centers could consume up to 12% of the country’s total electricity supply by 2028. Industry Pushback: ‘Blame the Server Racks’ Won’t Work Not everyone is on board with the legislation. VanEck’s head of research, Matthew Sigel, characterized the proposal as an unfair targeting of crypto miners and server-heavy industries. He labeled it a “losing ‘Blame the Server Racks’ strategy” in a post on X, reflecting growing concerns from stakeholders that the bill could hurt innovation more than it helps the climate. There’s also a looming conflict with the current policy trajectory under President Donald Trump . His administration recently rolled back a 2023 executive order that sought to enforce AI safety standards. Instead, Trump has publicly championed a vision of the U.S. as a global hub for both AI and crypto, setting the stage for a potential political clash over environmental regulation. Miners Caught in the Crossfire Meanwhile, Bitcoin miners are pivoting toward HPC services for AI firms , hoping to diversify revenue streams in a challenging market. Coin Metrics noted that this transition helped stabilize mining incomes in early 2025 — but warned that renewed trade tensions or regulatory shocks could unravel that progress. As the Clean Cloud Act awaits Senate debate, the future remains murky for crypto miners . With emissions fines on one side and geopolitical uncertainty on the other, the digital infrastructure powering blockchains may soon find itself fighting a two-front battle. The post Clean Cloud Act Targets Crypto and AI Data Centers: Details appeared first on TheCoinrise.com .

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