Clean Cloud Act Targets Crypto Mining's Carbon Footprint
US Senators Sheldon Whitehouse and John Fetterman have introduced the Clean Cloud Act of 2025, aiming to significantly reduce carbon emissions from energy-intensive cryptocurrency mining and artificial intelligence data centers. This legislation comes as Bitcoin miners increasingly adopt renewable energy sources.
Clean Cloud Act: Addressing Growing Energy Demands
The bill grants the Environmental Protection Agency (EPA) the authority to establish annual carbon performance standards for facilities consuming over 100 kilowatts of IT power. These standards will become increasingly stringent, with emissions limits decreasing by 11% annually.
Facilities exceeding emission caps will face penalties. A starting fee of $20 per ton of carbon dioxide equivalent will be imposed, escalating yearly to account for inflation, with an additional $10 per ton increase. The bill mandates rigorous accounting, including indirect emissions from the electricity grid.
Driving the Need for Change
Lawmakers argue that the surging energy demands of cryptocurrency mining and AI data centers are unsustainable, outpacing the growth of clean energy sources. Data centers currently consume 4% of US electricity, projected to reach 12% by 2028. This increased demand has even led to the reactivation of old coal plants, exacerbating the nation's carbon footprint.
Senator Whitehouse emphasized that this escalating energy consumption drives up electricity costs for consumers. He stated the Clean Cloud Act will incentivize tech firms to invest in clean energy, contributing to a net-zero emissions power grid within the next decade.
“We don’t have to choose between AI leadership and climate safety. The Clean Cloud Act will push the crypto and AI industries to invest in new clean energy sources,” Senator Whitehouse stated.
To mitigate the impact on low-income households, 25% of revenue from emission penalties will offset energy costs. The remaining funds will support grants for long-duration energy storage and clean power generation projects.
Crypto Industry's Transition to Renewable Energy
This legislation arrives as the cryptocurrency industry actively transitions towards greener energy sources. A recent MiCA Crypto Alliance report reveals that 41% of Bitcoin mining was powered by renewable energy by the end of 2024, a significant increase from 20% in 2011.
Bitcoin Miners Renewable Energy Use. Source: MiCA Crypto Alliance
The report projects that over 70% of mining activities could be powered by renewables by 2030, driven by cost efficiency, policy changes, and a broader sustainability push.
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