Draft legislation in the US Senate threatens to hit data centers serving blockchain networks and artificial intelligence models with fees if they exceed federal emissions targets, according to an April 11 Bloomberg report. Led by Senate Democrats Sheldon Whitehouse and John Fetterman, the draft bill purportedly aims to address environmental impacts from rising energy demand and protect households from higher energy bills, Bloomberg said.
The legislation also includes penalties for emissions exceeding the set standard, starting at $20 per ton of CO2e, with the penalty increasing annually by inflation plus an additional $10.“Surging power demand from cryptominers and data centers is outpacing the growth of carbon-free electricity,” notes a minority blog post on the US Senate Committee on Environment and Public Works website, adding that data centers’ electricity usage is projected to account for up to 12% of the US total power demand by 2028.
For Matthew Sigel, VanEck’s head of research, the proposed legislation effectively seeks to single out Bitcoin (BTC) miners and similar operations for energy consumption in a “Losing ‘Blame the Server Racks’ Strategy,” he said in an April 11 X post. In addition, the law could clash with the US’s policy under President Donald Trump, who repealed a 2023 executive order by former President Joe Biden setting AI safety standards.
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Author / Journalist: Cointelegraph by Alex O’Donnell
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