A new U.S. Senate proposal could spell trouble for crypto miners and AI data centers. The Clean Cloud Act, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, seeks to impose emissions limits and financial penalties on data centers.
Those include powering blockchain and artificial intelligence models that exceed federally set environmental benchmarks, according to an April 11 report from Bloomberg.
The bill hasn't passed yet but comes as Bitcoin mining firms increasingly pivot toward AI infrastructure, leveraging their high-performance computing (HPC) setups to offset declining crypto revenues. Major mining firms like Galaxy, CoreScientific, and Terawulf are already integrating AI services into their operations.
Under the proposed legislation, the EPA would be tasked with setting an emissions performance standard for facilities with over 100 kilowatts of installed IT capacity. These standards would be regionally based and would require an 11% annual emissions reduction.
Any facility exceeding these limits would face penalties starting at $20 per metric ton of CO2e, with annual increases based on inflation plus an additional $10 per ton. The bill aims to curb the rising power demand from data-heavy industries and prevent surging energy costs for American households.
The Senate Committee on Environment and Public Works notes that data centers could consume up to 12% of total U.S. electricity by 2028. Morgan Stanley projects these facilities will generate around 2.5 billion metric tons of global CO2 emissions by 2030.
Critics argue the bill unfairly singles out crypto mining. VanEck’s head of research, Matthew Sigel, labeled it a “Losing ‘Blame the Server Racks’ Strategy,” suggesting it's an oversimplified attempt to pin broader energy concerns on a specific industry.
The proposal also risks clashing with former President Donald Trump’s deregulatory stance, which included repealing a 2023 Biden executive order on AI safety. Trump has championed making the U.S. the global hub for both AI and cryptocurrency.
As crypto markets face headwinds - compounded by Bitcoin’s 2024 halving and prolonged price stagnation in 2025 - miners are increasingly repurposing infrastructure for AI applications. According to Coin Metrics, miner revenue began to stabilize in early 2025 thanks in part to this diversification.
However, that recovery may be fragile. Industry leaders warn that ongoing trade tensions and aggressive tariffs could further disrupt operations. For now, the Clean Cloud Act remains in draft form - but if passed, it could mark a significant regulatory shift for two of the most energy-hungry sectors of the digital economy.