Cryptocurrency miners in the US will have to reduce their carbon emissions if lawmakers pass the Clean Cloud Act 2025.
The bill, drafted by Senators Sheldon Whitehouse and John Fetterman, proposes introducing quotas on CO2 emissions from companies consuming more than 100 kilowatt-hours of electricity that mine digital assets and process data for artificial intelligence (AI) software developers. The lawmakers propose setting a limit until the end of 2025 and reducing it by 11% per year to achieve zero emissions by 2035.
Data centers could support clean energy companies, but instead they partner with fossil fuel burning companies, driving up electricity prices for individuals.
By passing the Clean Cloud 2025 Executive Order, we can protect the environment and ensure that businesses do their part to do so, wrote members of the Senate Environment and Public Works Committee.
Cryptocurrency mining farm in Kazakhstan
Mining farms that exceed carbon emission quotas are to be fined to force them to comply with the established requirements. The money thus obtained is planned to be transferred in the form of grants to municipal authorities to finance startups working in the field of electricity generation using renewable sources. Apparently, this primarily concerns wind and solar power plants.
According to the International Monetary Fund, cryptocurrency mining facilities and data centers that provide services to AI developers consumed 2% of electricity last year, emitting 1% of CO2 during the generation of which. In 2025, the capacity of these facilities is expected to increase by 75%, so they will consume 3,5% of electricity. In this regard, the companies will be responsible for emitting 1,75% of the volume of carbon dioxide. Given these statistics, IMF staff proposes to take measures to regulate CO2 emissions to reduce the impact of the cryptocurrency and artificial intelligence industries on the environment.
