New US Regulations Impose Energy Use Restrictions on Bitcoin Miners and AI Companies
The Clean Cloud Act of 2025 proposes carbon standards for data centers using over 100kW, targeting Bitcoin miners and AI firms.
Heavy financial penalties await firms exceeding emission limits, with fines starting at $20 per ton of Carbon dioxide and rising annually.
The push for renewable energy grows as 41% of Bitcoin mining already uses clean energy, potentially reaching 70% within five years.
Two US senators (John Fetterman and Sheldon Whitehouse) have put forward a new bill (the Clean Cloud Act of 2025). The primary objective of the proposed legislation is to ensure that artificial intelligence centers and crypto mining operations that use huge amounts of energy reduce their carbon emissions.
Clean Cloud Act Claims Bitcoin Miners’ Energy Demand Is Unsustainable
The bill proposes that every year, the environmental protection agency (EPA) be given the authority to create a carbon performance standard for data centers using more than 100 kilowatts of IT power. The bill also proposes a tightening of the standards every year till emission limits drop by 11% every twelve months.
Businesses that emit above the required carbon limit will pay a financial penalty of at least $20 for every ton of carbon dioxide. This fee will increase annually to adjust with inflation and could include another $10 per ton.
In addition, the bill requires standard auditing methods, including indirect grid emissions. Senators Whitehouse and Fetterman claim that AI centers and Bitcoin miners are seeking power resources at a pace the authorities cannot sustain.
They further argued that 4% of all the electricity consumption in the whole of US are by data centers alone and predicted that this consumption could rise to 12% in the next three years. The lawmakers also said that some facilities have started using previously abandoned coal plants to satisfy the increase in demand.
Bitcoin Miners and Others May Pay Heavy Fines
Hence, they argued that such a move is accelerating the degradation of the nation’s environment. Senator Whitehouse said these factors are causing a rise in electricity costs for users. He explained that the bill would force tech firms to invest in clean energy.
Should this be in place, the US will achieve net-zero emissions in the next ten years. Part of the bill’s proposal is to use 25% of the fines received to lower energy costs, a move that will benefit low-income households.
The proposed bill is coming at a time most Bitcoin miners are switching to renewable energy sources for their daily operations. A recent report by the MiCA Crypto Alliance stated that 41% of energy supply for Bitcoin miner operations in 2024 was through renewable sources.
The report added that if this adoption rate continues at this pace or higher, renewable energy sources will power more than 70% of mining activities within the next five years.
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