US Senate Targets AI and Crypto Data Centers With Emissions-Based Fees

Key Takeaways:

A new Senate bill proposes emissions penalties for data centers supporting crypto and AI.

The Clean Cloud Act tasks the EPA with setting standards and fines.

Senate Proposes Emissions Fees for AI and Crypto Data Centers

Bitcoin miners increasingly turn to AI hosting amid revenue pressure and policy uncertainty.

A new legislative proposal from the US Senate seeks to impose emissions-based fees on data centers operating blockchain and artificial intelligence systems, particularly those exceeding federal environmental thresholds.

Backed by Democratic Senators Sheldon, Whitehouse and John Fetterman, the Clean Cloud Act aims to address the surging energy demands of advanced technologies without burdening American households with higher electricity costs, Bloomberg reports.

Clean Cloud Act: A Closer Look and Industry Pushback

The proposed legislation directs the Environmental Protection Agency (EPA) to develop emissions performance standards specifically for large-scale crypto mining and data center operations with IT power capacities exceeding 100 kilowatts.

The EPA’s performance benchmarks would reflect regional power grid emissions and target an 11% annual decrease in carbon output. Facilities breaching these thresholds would face penalties, starting at $20 per metric ton of CO2 equivalent. This fee would increase each year, adjusted for inflation and an additional $10 increment.

A statement on the Senate Environment and Public Works Committee’s minority webpage warns that demand from data centers and crypto operations is now outpacing clean energy development. Projections suggest data centers could consume up to 12% of the US electricity supply by 2028.

Global estimates from Morgan Stanley foresee data centers emitting around 2.5 billion metric tons of carbon dioxide by 2030.

Critics of the bill, such as VanEck’s Head of Research Matthew Sigel, have argued that targeting Bitcoin miners and data centers is misguided. He characterized the proposal as a “blame the server racks” tactic in a post shared on X (formerly Twitter) on April 11.

The legislation may also conflict with current federal policy under President Donald Trump. Trump recently rescinded a 2023 executive order from former President Biden that established safety guidelines for AI. He has openly called for the US to become a global hub for both AI and cryptocurrency.

Bitcoin Miners Shift Focus Toward AI Hosting

The timing of the bill coincides with a strategic pivot among major Bitcoin mining companies like Galaxy, CoreScientific, and Terawulf, which are increasingly leveraging their infrastructure to support high-performance computing (HPC) needs for AI projects, according to VanEck.

The crypto mining sector has faced mounting pressure in 2025 due to falling Bitcoin prices and the recent halving event, which reduced block rewards and strained revenue models.

Data from Coin Metrics shows that many miners are now adapting by offering AI data center services, using existing hardware to tap into new income streams.

While miners saw some stabilization in revenue during the first quarter of 2025, industry experts warn that this rebound could be jeopardized by escalating global trade disputes.

Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance, noted that aggressive tariffs and retaliatory trade policies may disrupt the broader blockchain ecosystem. He emphasized that not only digital assets, but also the critical infrastructure supporting them, could become unintended casualties during times of geopolitical volatility.