Emissions Tax To Be Introduced On AI Data Centres

Cutting Emissions

The bill directs the EPA to set strict emissions limits for facilities using over 100 kilowatts of IT power, with a target to cut emissions by 11% annually. Non-compliant centres would face a starting fine of $20 per metric ton of CO₂-equivalent, increasing yearly with inflation plus $10.

Source: U.S. Senate

The push comes amid projections that data centres could consume 12% of U.S. electricity by 2028, with global emissions reaching 2.5 billion metric tons by 2030, according to Morgan Stanley. Lawmakers warn energy demand from crypto and AI is outpacing renewable growth.

Growing Concerns

Critics, like VanEck’s Matthew Sigel, call the bill a misdirected attack on Bitcoin (BTC) miners. Meanwhile, crypto firms including CoreScientific and Galaxy are shifting toward AI computing amid market pressures like the recent Bitcoin halving.

The act may also conflict with Donald Trump’s pro-tech agenda, which favors deregulation. Some in the industry fear it could stifle blockchain innovation in an already uncertain regulatory environment.