New 'Clean Cloud Act' Forces Data Centers to Report Energy Use, Imposes Fees to Fund 24/7 Green Power

The new Clean Cloud Act of 2025 is a big move to tackle the massive, growing energy hunger of the internet—specifically, data centers and crypto mining operations. The bill starts by noting that these facilities already use about 4% of U.S. electricity, a number projected to hit 12% by 2028 if nothing changes. To slow that down and clean it up, the Act mandates annual, detailed energy reporting from any facility with over 100 kilowatts of IT power capacity—that’s where your streaming, AI, and digital currency are processed.

The Emissions Tax: Your Utility Might Pay

Starting in 2026, the core of this bill is a new fee structure designed to push these energy hogs toward cleaner power sources. The Administrator (likely the EPA) will set regional emissions baselines for the electric grid that get 11% stricter every year until they hit zero in 2035. If the electricity a covered facility pulls from the grid is dirtier than that baseline, the electric utility serving them gets hit with a fee. This fee is calculated by multiplying the excess emissions intensity by the total electricity consumed, and then by a base rate that starts at $20 and increases annually.

This is a big deal for your local utility. They are strictly forbidden from passing this fee onto residential customers or any other non-covered customer class. If they try, they get penalized double the amount they recouped. For the average person, this provision is designed to shield your monthly bill from the cost of cleaning up the cloud, while putting direct financial pressure on utilities to source cleaner power for their biggest customers. If you run a small business or are just trying to keep your household budget stable, this cost protection is a major point to watch.

Crypto Miners and On-Site Power Get Hit Too

It’s not just the utilities that face a charge. Owners of covered facilities—including those specifically flagged as crypto mining operations—will pay a similar fee if the power they generate behind the meter (like on-site diesel generators or solar arrays) exceeds the regional emissions baseline. The calculation is the same, meaning facilities that rely on older, high-emitting on-site power sources will face significant and escalating costs. The bill explicitly calls out proof-of-work crypto mining, which is known for its intense energy demands, signaling that this sector is a primary target for emission reduction.

The Zero-Carbon Catch: Proving Your Power

If a facility wants to avoid these fees, they have to prove they are powered entirely by zero-carbon electricity generation during every hour they operate. This means complex tracking. If a facility has a Power Purchase Agreement (PPA) for renewable energy, that power only counts as clean if the source is new (started within 36 months of the facility) or was saved from retirement. Critically, after 2027, the power must be consumed in the same hour it is generated or stored in a battery serving the facility. This hourly matching requirement is a massive hurdle that will drive demand for sophisticated energy storage solutions.

Where the Money Goes: Funding Reliable Green Power

Starting in 2028, 70% of the fees collected from these penalties will be poured into “Clean Firm Grants.” These grants are dedicated solely to R&D, deployment, and loans for zero-carbon generation assets that can run constantly (with a capacity factor over 70%) or for long-duration energy storage (at least 10 hours). Essentially, the bill uses the money collected from dirty cloud computing to fund the next generation of reliable, clean power sources that can run 24/7.

Another 25% of the funds will go to states, tribes, and utilities to award grants specifically to help lower residential electricity costs. This provision is designed to directly offset the upward pressure on rates that heavy data center demand often creates, offering a potential relief valve for ordinary consumers facing rising utility bills.

The Bottom Line for Busy People

This Act is a complex regulatory hammer that hits the energy-intensive tech sector and the utilities that serve them. For the average person, the main takeaways are: 1) The cost of powering the internet is being pushed onto the providers and their utilities, not directly onto residential customers. 2) Your utility bills might get a small break thanks to the residential cost offset grants. 3) The bill creates a huge financial incentive for the rapid development of reliable, always-on zero-carbon energy technology. While the new reporting requirements are a headache for the industry, the goal is to make sure the next wave of AI and streaming doesn't rely on firing up your neighbor's old, dirty power plant.