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Mining Industry's Green Transformation Countdown: US Senate Proposal Calls for Complete Phasing Out of Fossil Fuels by 2035

Mining Industry's Green Transformation Countdown: US Senate Proposal Calls for Complete Phasing Out of Fossil Fuels by 2035

BlockBeatsBlockBeats2025/04/16 01:00
By:BlockBeats

If the "Clean Cloud Act" successfully passes, mining companies and AI data centers will more quickly transition to using renewable energy sources, and those who do not adapt will face the risk of being phased out by the market.

Original Article Title: "Democratic Party Proposes 'Clean Cloud Act' Requiring U.S. Bitcoin Mining Farms and AI Power Centers to Embrace Green Energy: Achieve Net Zero Emissions by 2035"
Original Article Author: Joe, BlockTempo


The U.S. Senate has introduced the "Clean Cloud Act of 2025," which calls for cryptocurrency mining farms and AI data centers to gradually phase out fossil fuels or face fines, with the goal of achieving net zero emissions by 2035.


This bill was jointly proposed by Democratic Senators Sheldon Whitehouse and John Fetterman, aiming to strictly limit the carbon emissions of cryptocurrency mining enterprises and artificial intelligence (AI) data centers and establish a clear timetable to achieve net-zero emissions by 2035. Facilities that continue to use non-renewable energy sources will be fined.


Core Mechanism of the Bill: Regional Emission Cap and Annual Decrease


According to the draft, the "Clean Cloud Act" will amend the existing "Clean Air Act." In the future, all data centers with an energy capacity exceeding 100 kilowatts (including cryptocurrency mining farms and AI computing centers) must comply with regional emission caps.


These caps will be based on the regional electricity demand divisions set forth in the U.S. Department of Energy's "National Electricity Delivery Division Study." Due to the differences in energy structure and grid conditions, different regions will face varying emission reduction requirements.


The bill requires the emission caps for each region to be set by the end of 2025, and thereafter to be reduced by 11% annually until achieving net zero emissions by 2035. Non-compliant enterprises will be required to pay fines based on their excess emissions adjusted for inflation.


It is worth noting that the draft also clearly prohibits companies from passing the fine costs on to customers to ensure that the companies bear the environmental responsibility themselves.


Strict Reporting Obligations and Liability Attribution


The bill also requires relevant facilities to submit detailed reports annually, including key information such as total power consumption and the proportion of power sources (renewable energy vs. fossil fuels).


Of particular note, the draft assigns the responsibility for paying fines to the "tenant of the leased facility" rather than the facility owner. This means that individuals or companies that only lease servers for mining or AI operations may also be required to report data and bear potential fines, expanding the scope of applicability.


Enabling Green Energy Development While Increasing Pressure on Small and Medium-Sized Businesses


If the bill is passed, it will encourage cloud service providers and data centers to actively adopt green energy, attracting environmentally-conscious customers. However, for small and medium-sized enterprises, this may pose a challenge as they may lack the necessary resources to address the energy transition and compliance costs.


The Cryptocurrency Mining Industry Shows a Green Trend


By the end of 2024, over 50% of the global Bitcoin mining network's energy is already sourced from renewable energy such as hydro, wind, and solar power. Regions rich in green energy and with low prices, such as Iceland and Quebec, Canada, have become the preferred choices for miners.


If the "Clean Cloud Act" is smoothly passed, mining companies and AI data centers will quickly transition to using renewable energy, with those who do not adapt facing the risk of being phased out of the market.


Overall, the bill sets forth a proactive and rigorous emission reduction timetable, prompting relevant companies to plan their energy transition early. However, in the context of the Trump administration, considering his multiple denials of the correlation between global warming and carbon emissions, the bill is bound to encounter resistance from the Republican Party in Congress (who may view the bill as overly stringent, stifling innovation, and weakening America's competitiveness in the cryptocurrency and AI fields). The ultimate passage of the bill remains highly uncertain.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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