US Senators Sheldon Whitehouse and John Fetterman Introduce the Clean Cloud Act of 2025

The bill aims to reduce carbon emissions from energy-intensive crypto-mining operations and artificial intelligence data centers.

US Senators Sheldon Whitehouse and John Fetterman have introduced the Clean Cloud Act of 2025. The bill aims to reduce carbon emissions from energy-intensive crypto-mining operations and artificial intelligence data centers.

This initiative comes at a time when Bitcoin miners are increasingly turning towards renewable energy sources to power their mining activities.

The Clean Cloud Act links the rising energy demand to Bitcoin mining and introduces a new carbon performance standard program for facilities with 100 kilowatts or more of installed information technology power.

The Environmental Protection Agency (EPA) would set annual standards for reducing carbon dioxide emissions, with limits declining by 11% each year. Companies that exceed the cap will pay a starting fee of $20 per ton of carbon dioxide equivalent, with the fee increasing yearly to account for inflation and an additional $10 per ton.

The bill enforces strict accounting methods to include indirect emissions from the energy used by the facilities and applies to both private and public sector institutions.

The lawmakers argue that crypto miners and AI centers are quickly increasing power demand to an unsustainable level. They assert that current clean energy sources cannot keep pace with the rapid growth in demand for Bitcoin mining.

Senator Fetterman added that data centers already consume 4% of all electricity in the US, with projections indicating a consumption of 12% by 2028, and utilities have even restarted old coal plants to meet the demand.

This pressure is driving up electricity costs for consumers, and to mitigate this, the Clean Cloud Act will push technology firms towards clean energy investments, aiming to help ensure the US power grid can reach net-zero emissions within the next decade, Senator Whitehouse stated.

To provide relief to low-income households, 25% of the revenue generated from emissions penalties will be used to offset energy costs, while the remaining portion will fund grants to support the development of long-duration storage and clean power generation projects.

The senators' initiative follows a recent report by the MiCA Crypto Alliance, which highlighted the substantial shift in the Bitcoin mining industry towards greener energy practices.

By the end of 2024, renewable energy sources powered 41% of Bitcoin mining operations, a significant increase from 20% in 2011.

Following this rapid adoption rate, the report forecasts that renewables could support over 70% of mining activities by 2030, driven by cost efficiency, evolving policies, and a broader shift toward sustainable practices in the crypto sector.

This move by the senators comes as the crypto industry is steadily transitioning to greener energy, aligning with broader environmental goals and reducing the industry's carbon footprint. As Bitcoin's price hovers around the $70,000 mark, the industry continues to innovate and adapt to the changing energy landscape.

The Clean Cloud Act aims to balance technological advancement with environmental responsibility, ensuring a sustainable future for both the US economy and the planet.

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