US Senators Introduce Clean Cloud Act to Cut Crypto Mining Emissions by 11% Annually

US Senators Sheldon Whitehouse and John Fetterman have introduced the Clean Cloud Act of 2025, a bill aimed at reducing carbon emissions from energy-intensive crypto-mining operations and artificial intelligence data centers. This legislation comes at a time when Bitcoin miners are increasingly transitioning to renewable energy sources to power their operations.

The Clean Cloud Act proposes that the Environmental Protection Agency (EPA) be granted the authority to set annual carbon performance standards for facilities with over 100 kilowatts of installed IT power. These standards would tighten each year, with emissions limits declining by 11% annually. Companies that exceed the cap will face a starting fee of $20 per ton of carbon dioxide equivalent, which will rise yearly, adjusting for inflation and an additional $10 per ton. The bill also enforces strict accounting methods to include indirect emissions from the grid.

Lawmakers argue that crypto miners and AI centers are driving up power demand at an unsustainable pace. They noted that data centers alone use 4% of all electricity in the US and could hit 12% by 2028. Utilities have even restarted old coal plants to meet rising demand, worsening the country’s carbon footprint. Senator Whitehouse highlighted that this pressure is driving up electricity costs for consumers. He stated that the bill would push tech firms toward clean energy investments and help ensure the US power grid can reach net-zero emissions within the next decade.

“The good news is that we don’t have to choose between leading the world on AI and leading the world on climate safety: big technology and AI companies have all the money in the world to pay for developing new sources of clean energy, rather than overloading local grids and firing up fossil fuel pollution. The Clean Cloud Act will drive utilities and the burgeoning crypto and AI industries to invest in new sources of clean energy,” the lawmaker stated.

To protect low-income households, 25% of the revenue generated from emissions penalties will offset energy costs. The rest will fund grants supporting long-duration storage and clean power generation projects. Meanwhile, the crypto industry is steadily transitioning to greener energy. A recent report shows that renewable energy powered 41% of Bitcoin mining by the end of 2024, up from 20% in 2011. Following this rapid adoption rate, the report forecast 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 summary, the Clean Cloud Act of 2025 is a significant step towards reducing the carbon footprint of energy-intensive industries. By setting stringent emission standards and incentivizing the use of renewable energy, the bill aims to balance the growth of AI and crypto mining with environmental sustainability. The legislation not only addresses the immediate concerns of rising energy demand and emissions but also lays the groundwork for a more sustainable future, ensuring that technological advancements do not come at the cost of the environment.