Whitehouse, Fetterman Introduce Clean Cloud Act to Create Emissions Standard for AI, Cryptomining Facilities

Surging power demand from cryptomining facilities and AI data centers is raising rates for consumers and increasing fossil fuel consumption

New emissions standard would incentivize robust investment in clean energy generation

Washington, DC – U.S. Senator Sheldon Whitehouse (D-RI), Ranking Member of the U.S. Senate Committee on Environment and Public Works (EPW), and Senator John Fetterman (D-PA) today introduced the Clean Cloud Act, legislation that would set an emissions performance standard for the electricity used by cryptomining facilities and data centers and utilize the revenues generated to help consumers save on utility bills and invest in long-term storage and clean firm generation.  

“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,” said Ranking Member Whitehouse.  “The good news is that we don’t have to choose between leading the world on AI and leading the world on climate safety: big technology and AI companies have all the money in the world to pay for developing new sources of clean energy, rather than overloading local grids and firing up fossil fuel pollution.  The Clean Cloud Act will drive utilities and the burgeoning crypto and AI industries to invest in new sources of clean energy and thereby ensure that a net-zero grid remains achievable in the near future.”

“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,” said Senator Fetterman. “I’m proud to join Senator Whitehouse to introduce the Clean Cloud Act because we can’t let tech innovation come at the expense of the clean air and water Pennsylvanians rely on. This bill will incentivize clean energy while also helping lower electricity prices for Pennsylvanians. This is a commonsense solution that saves our environment while saving people’s money.”

Surging power demand from cryptominers and data centers is outpacing the growth of carbon-free electricity.  Data centers now use 4 percent of all electricity in the United States and are projected to account for up to 12 percent of total U.S. power demand by 2028.  Utilities are raising consumer electricity rates and increasingly relying on gas and coal generation to meet this growth.  In some instances, retired coal plants have even been brought back online to power cryptomining facilities.  Even in markets with solar or wind power, data centers often run continuously and need long-duration storage or clean firm generation to be truly carbon neutral. 

The Clean Cloud Act would direct the EPA to establish an emissions performance standard for data centers and cryptomining facilities that have more than 100 KW of installed IT nameplate power.  The emissions performance standard is set at regional grid emissions intensities and decreases annually by 11%.  The legislation would assess a penalty on emissions above the standard, beginning at $20 per ton CO2e and increasing annually by inflation plus $10.  The legislation enforces the “three pillars” of incrementality, deliverability, and hourly matching, to account for indirect grid emissions and prevent cryptominers and data centers from cannibalizing existing clean power.

To support low-income ratepayers, a quarter of all revenues raised will be used to assist families with energy costs, and most of the remaining revenues will fund grants for long-duration storage or clean firm generation.

The Clean Cloud Act is endorsed by the Utility Workers Union of America, EnergyTag, C2ES, and Public Citizen.

“Our members see the hidden but significant power demand data centers are already having on the grid every day,” said Utility Workers Union of America President James Slevin.  “We see this trend continuing and fully support efforts to build additional power generation, increase electric grid stability and grow energy industry jobs.  Thank you to Senator Whitehouse for introducing the Clean Cloud Act and for drawing attention to this important issue.”

“The United States is set to experience significant demand growth for the first time in decades.  It will be critical that this economic and industrial growth leverages the investment in new cloud infrastructure to catalyze clean energy buildout and does not come at the expense of rising electricity costs for ratepayers and increased emissions,” said Alex Piper, Head of US Policy and Markets at EnergyTag.  “EnergyTag applauds Senator Whitehouse’s leadership on this issue and has developed open-source standards for the next-generation hourly electricity tracking needed to ensure policies like the Clean Cloud Act are transparent, impactful, and trustworthy.  By ensuring robust clean energy accounting, on an hourly and local basis, this bill lays the foundations needed to ensure Clean Cloud growth in the US.”

The full text of the bill is available here.  A one-page fact sheet is available here.