- 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 timing here is worth looking at. Especially since it seemed to align curiously with Bitcoin miners like Galaxy and Terawulf pivoting to AI-driven HPC services.
According to Coin Metrics, miner revenues have seen signs of stabilization in early 2025. However, geopolitical tensions and ongoing trade disputes still pose a threat to their fragile recovery.
What’s more?
In fact, amid rising equipment costs and looming regulatory pressures in the U.S, concerns are mounting over a potential decline in domestic demand for Bitcoin mining rigs.
Hashlabs Mining CEO Jaran Mellerud recently pointed out that this could prompt manufacturers to offload excess inventory to overseas markets. This could potentially trigger a surge in global mining activity.
Now, with U.S miners facing mounting challenges, countries like Pakistan are seizing the moment.
By leveraging surplus electricity, Pakistan is positioning itself to fuel both Bitcoin mining and AI data center expansion, completely contrary to what is unfolding in the United States.
