In the US, a proposed bill could significantly impact data centers engaged in blockchain and artificial intelligence. Dubbed the "Clean Cloud Act," the legislation aims to establish emission standards and fees for these organizations.
Goals of the Clean Cloud Act
The bill, led by Senators Sheldon Whitehouse and John Fetterman, seeks to reduce environmental impacts from rising electricity demand and protect households from increased energy rates. It mandates the Environmental Protection Agency (EPA) to set an emissions performance standard for data centers and crypto mining operations with more than 100 KW of installed power.
Potential impact on miners and AI
The legislation also imposes penalties for emissions that exceed these standards, starting at $20 per ton of CO2, increasing annually. Experts believe the bill could significantly affect Bitcoin miners and data centers that are contributing to environmental degradation. This proposal could also clash with current US policy on AI regulation.
Market analysis and outlook
The rapid growth of data centers is projected to generate about 2.5 billion metric tons of CO2 emissions by the end of the decade. Cryptocurrency miners, including Galaxy and CoreScientific, are pivoting towards providing computational power for AI models, creating new monetization avenues for their infrastructure. However, potential trade wars and tariffs may pose challenges for this industry.
The proposed legislation contains significant measures aimed at regulating emissions from data centers serving blockchain and AI. Uncertainty in policy and potential fees could become a critical factor for miners and data operators in the future.
