Democrats Propose Clean Cloud Act to Transition U.S. Bitcoin Mining and AI Centers to Green Energy

According to BlockBeats, the U.S. Senate has introduced the Clean Cloud Act of 2025, aiming to phase out fossil fuels in cryptocurrency mining and AI data centers by 2035, with penalties for non-compliance. Proposed by Democratic Senators Sheldon Whitehouse and John Fetterman, the legislation seeks to impose strict carbon emission limits on these industries, setting a clear timeline to achieve net-zero emissions by 2035. Facilities continuing to use non-renewable energy will face fines. The core mechanism of the bill involves regional emission caps that decrease annually. The Clean Cloud Act will amend the existing Clean Air Act, requiring data centers with energy capacities exceeding 100 kilowatts to adhere to region-specific emission limits. These limits will be based on the U.S. Department of Energy's National Transmission Needs Study, with varying requirements depending on regional energy structures and grid conditions. Emission caps must be established by the end of 2025 and reduced by 11% annually until reaching zero emissions by 2035. Companies exceeding these limits will incur inflation-adjusted fines, and the bill prohibits passing these costs onto customers, ensuring companies bear the environmental responsibility. The legislation mandates annual detailed reports from facilities, including total energy consumption and the proportion of renewable versus fossil fuel energy sources. Notably, the responsibility for fines falls on the "tenant of the facility," not the owner, meaning even those renting servers for mining or AI operations must report data and potentially face fines, broadening the scope of accountability. If passed, the bill could drive cloud service providers and data centers to adopt green energy, appealing to environmentally conscious clients. However, it may pose challenges for small and medium-sized enterprises lacking resources for energy transition and compliance costs. The cryptocurrency mining industry is already trending towards green energy. By the end of 2024, over 50% of the global Bitcoin mining network's energy came from renewable sources like hydro, wind, and solar power. Regions with abundant and affordable green energy, such as Iceland and Quebec, have become popular among miners. Should the Clean Cloud Act pass, mining companies and AI centers will need to swiftly transition to renewable energy or risk market exclusion. However, under U.S. President Donald Trump's administration, which has previously denied the link between global warming and carbon emissions, the bill may face Republican opposition in Congress, potentially hindering its passage.