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Clean Cloud Act proposes CO₂ penalties for energy-intensive AI and crypto data centers Countries like Pakistan are leveraging surplus electricity to boost Bitcoin mining and AI infrastructure U.S. lawmakers have introduced a draft bill targeting the environmental toll of AI and crypto operations. Titled the Clean Cloud Act, the legislation is being spearheaded by Senators Sheldon Whitehouse and John Fetterman. The bill seeks to rein in the surging energy demands of data centers by enforcing stricter carbon emissions standards. What will happen if the bill gets passed? If passed, the bill would empower the Environmental Protection Agency (EPA) to impose CO₂ penalties on facilities exceeding federally set thresholds.  Providing reasons for the same, Senator Fetterman said,  “Fighting to keep the United States at the cutting edge of AI technology and protecting our natural resources for our kids and grandkids are not mutually exclusive goals.” Echoing similar sentiments, Senator Whitehouse noted,  “Energy-hungry data centers and cryptomining facilities are overloading our already strained power grid, driving up consumers’ electricity costs, making it harder for Americans to power their homes and businesses, and spiking fossil fuel emissions.” Crypto community criticizes the bill – Here’s why Reactions were’s positive within the crypto-community though. VanEck’s Research Chief Matthew Sigel, for instance, believes the bill unfairly targets Bitcoin [BTC] miners for their energy usage. He said,  Source: Matthew Sigel/X Further criticizing the Act, an X user added,  “This probably won’t pass but, even if it did, it’s hard to imagine the administration ever enforcing it barring a point-blank order from the supreme court to do so.” Challenges ahead While the Clean Cloud Act awaits Senate approval, doubts persist—Largely due to its exclusive Democratic sponsorship. However, Trump’s prior push for U.S dominance in AI and crypto could keep the bill’s relevance very much alive. Even so, the…

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Filed under: News - @ April 12, 2025 8:15 pm