Senators Propose Carbon Emission Fees for Blockchain and AI Data Centers

In Brief:

Data centers exceeding emission caps may face $20/ton carbon fees.

New bill targets crypto mining and AI operations with >100KW capacity.

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U.S. Senators Sheldon Whitehouse and John Fetterman have introduced the Clean Cloud Act, a new bill aimed at curbing the environmental impact of high-energy data operations. The legislation specifically targets blockchain mining facilities and AI data centers that exceed carbon emissions limits, proposing a fee-based penalty system.

The bill empowers the U.S. Environmental Protection Agency (EPA) to set strict emissions standards for facilities operating with an IT nameplate capacity exceeding 100 kilowatts. These centers will be required to reduce emissions by 11% annually, aligning with broader national climate goals.

If emissions surpass the designated cap, facilities will be charged $20 per ton of CO₂ equivalent, with an automatic yearly increase of $10 adjusted for inflation. This policy could significantly impact large-scale crypto mining operations, many of which have been under scrutiny for excessive energy use and reliance on non-renewable power sources.

Whitehouse emphasized that unchecked data center emissions could raise energy prices for consumers and derail climate targets. Fetterman added that while tech innovation is important, it shouldn’t come at the cost of environmental sustainability.

The Clean Cloud Act comes amid growing debate over how to regulate energy-intensive digital infrastructure without stifling growth in emerging technologies like AI and crypto.

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