Key Points
- The Clean Cloud Act, a draft bill in the U.S., proposes CO₂ penalties for data centers exceeding energy thresholds.
- While the bill faces criticism and challenges, countries like Pakistan are leveraging surplus electricity for Bitcoin mining and AI infrastructure.
U.S. Senators Sheldon Whitehouse and John Fetterman have put forward a draft bill, the Clean Cloud Act, aimed at addressing the environmental impact of AI and crypto operations.
The legislation proposes stricter carbon emission standards for data centers in response to their increasing energy demands.
Implications of the Clean Cloud Act
If the bill is approved, the Environmental Protection Agency (EPA) would have the authority to penalize facilities that exceed federal energy consumption thresholds.
Senator Fetterman stated that the U.S. could remain at the forefront of AI technology while also safeguarding natural resources for future generations.
Senator Whitehouse added that energy-intensive data centers and cryptomining facilities are straining the power grid, increasing electricity costs, and contributing to fossil fuel emissions.
Criticism and Challenges
The bill has been met with criticism from the crypto community. Matthew Sigel, VanEck’s Research Chief, suggested that the bill unfairly targets Bitcoin miners due to their energy usage.
The Clean Cloud Act’s future is uncertain as it awaits Senate approval, largely due to its exclusively Democratic sponsorship.
However, the bill may still hold relevance due to a previous push by Trump for U.S dominance in AI and crypto.
The introduction of the bill coincides with Bitcoin miners like Galaxy and Terawulf shifting towards AI-driven HPC services.
Miner revenues have shown signs of stabilization in early 2025, according to Coin Metrics, but geopolitical tensions and ongoing trade disputes threaten this fragile recovery.
Rising equipment costs and impending regulatory pressures in the U.S are raising concerns about a potential decrease in domestic demand for Bitcoin mining rigs.
Hashlabs Mining CEO Jaran Mellerud suggested that this could lead manufacturers to sell excess inventory to overseas markets, potentially triggering a global increase in mining activity.
Meanwhile, countries like Pakistan are taking advantage of the situation. By using surplus electricity, Pakistan is positioning itself to boost both Bitcoin mining and AI data center expansion, in stark contrast to the situation in the United States.
