Democratic Senators Sheldon Whitehouse and John Fetterman have introduced the Clean Cloud Act of 2025 to limit energy use and emissions from crypto mining and AI data centres. The bill mandates a yearly 11 percent emissions reduction and aims for net zero emissions by 2035, requiring 100 percent renewable energy usage. Facilities over 100kW must report energy consumption, facing fines for non-compliance. The legislation might face challenges in the Republican-controlled Senate.
Two Democratic Senators, Sheldon Whitehouse and John Fetterman, have introduced an amendment to the Clean Air Act aimed at reducing energy consumption and emissions from cryptocurrency mining and AI data centers. The proposed legislation, known as the Clean Cloud Act of 2025, targets the stressful impact of energy-intensive operations on the power grid, which leads to increased electricity costs for consumers and heightened fossil fuel emissions, as noted by Whitehouse.
The bill stipulates that covered industries must achieve a cumulative emissions reduction of 11 percent each year. Further, it highlights concerns about the lack of transparency regarding energy sources utilised in domestic cryptomining and data centre operations. The ultimate goal of the legislation is to transition to net zero emissions by 2035, mandating that all operations in the crypto and AI sectors utilise 100 percent renewable energy.
Fetterman emphasised the benefits of the bill, stating it will stimulate clean energy initiatives while lowering electricity costs for residents of Pennsylvania. Key amendments require facilities with power consumption exceeding 100kW to submit annual reports detailing their energy utilisation, including sources, consumption data, and emission statistics.
Non-compliance with these requirements could result in fines starting at $20 per kW of excess energy usage, which will be adjusted for inflation. Importantly, the legislation prohibits passing these costs onto customers. However, the bill is anticipated to encounter substantial opposition in the Republican-controlled Senate, where the GOP holds a 53 to 47 majority. The Trump administration has been generally favourable towards the cryptocurrency sector, creating a strategic reserve and easing regulations, which may influence current legislative support.
Additionally, Donald Trump’s sons, Eric and Donald Jr., are significantly invested in the cryptocurrency market through American Bitcoin Corp, which recently formed a partnership with Hut 8, a prominent industry player.
Overall, the Clean Cloud Act of 2025 aims to create a framework for sustainable energy use within burgeoning technologies that currently threaten environmental stability.
