'Clean Cloud Act' draft bill requires crypto miners to cut emissions or face fines

Quick Take

  • Senate Democrats introduced a bill Thursday that would set regional limits on the emissions from crypto mining facilities and AI data centers, imposing fines on facilities that surpass the cap. 
  • The regional caps would be reduced by 11% annually until reaching zero by 2035, requiring facilities to operate on 100% renewable energy, or face fines. 
  • The draft bill would also require facilities to submit detailed annual reports on electricity usage and sourcing to allow the EPA to calculate each facility’s emission intensity. 

A draft bill dubbed the "Clean Cloud Act of 2025" introduced to the U.S. Senate by Democratic Senators Sheldon Whitehouse and John Fetterman seeks to curb emissions from crypto mining facilities and AI data centers, with the eventual goal of fining any facility using non-renewable energy sources by 2035. 

The draft bill would amend the Clean Air Act to require data centers with more than 100 kW of energy capacity to meet emissions caps that vary by region, as laid out in the Department of Energy's National Transmission Needs Study

Each of the above regions would have a different emissions cap, according to the draft bill.

The caps would be set by the end of 2025, and would lower by 11% each year until reaching zero in 2035. Facilities that exceed the emissions caps would pay inflation-adjusted fees based on how much their emissions exceeded the caps, and are forbidden from passing the costs off to customers. The collected funds would be used to alleviate potential residential electricity cost increases through grants to local municipalities and also to fund clean energy deployment. 

"Crypto & AI data centers can support clean energy, but they're burning more fossil fuels & driving up families’ energy prices instead," the X account representing the Democrats of the Senate Committee on Environment and Public Works wrote. "We can lead on AI & climate safety with [Whitehouse]’s Clean Cloud Act, which ensures that the industries profiting also pay their own way."

The facilities would also be required to make detailed annual reports about their electricity consumption and sourcing, allowing the EPA to calculate the greenhouse gas emission intensity of each facility, and evaluate any possible fines based on the regional caps. The responsibility for paying the fines would be assigned to the tenants leasing the facilities, not the landlords, which could loop in startups renting server space to the reporting requirements and fines. 

The bill will likely face opposition from Republicans in Congress. President Trump has expressed a desire for the United States to become the world's most significant Bitcoin mining power. President Trump's eldest sons are also planning to take their own Bitcoin mining company public, The Block previously reported. 


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

AUTHOR

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].

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