{"id":438888,"date":"2024-08-16T12:30:35","date_gmt":"2024-08-16T11:30:35","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=438888"},"modified":"2024-08-16T14:28:37","modified_gmt":"2024-08-16T13:28:37","slug":"imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers\/","title":{"rendered":"IMF proposes 85% power tax hike on crypto and AI data centers"},"content":{"rendered":"<p>The International Monetary Fund (IMF) has proposed higher energy taxes to reduce emissions from crypto miners and artificial intelligence (AI) data centers, according to an Aug. 15 <a href=\"https:\/\/www.imf.org\/en\/Blogs\/Articles\/2024\/08\/15\/carbon-emissions-from-ai-and-crypto-are-surging-and-tax-policy-can-help\">report<\/a>.<\/p>\n<p>Daniel Batten, the Managing Partner at CH4Capital, has issued a strong rebuttal to the report on his X (formerly Twitter) <a href=\"https:\/\/x.com\/DSBatten\/status\/1824129351371096516\">account<\/a>, stating,<\/p>\n<blockquote><p>&#8220;Bitcoin mining has significant environmental benefits, those who stand to lose most from mainstream adoption of Bitcoin (IMF, Central Banks) are needing to resort to direct attack-pieces.&#8221;<\/p><\/blockquote>\n<p>The IMF argues that these sectors consume 2% of the world's electricity and contribute nearly 1% of global emissions. The financial regulator claimed that one <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> transaction uses the same electricity that an average person in Ghana or Pakistan would use in three years.<\/p>\n<p>Additionally, it argues a <a href=\"https:\/\/cryptoslate.com\/memecoin-made-by-chatgpt-for-69-now-worth-618-million-as-casino-culture-rages\/\">ChatGPT<\/a> query consumes ten times more electricity than a <a href=\"https:\/\/cryptoslate.com\/companies\/google\/\">Google<\/a> search due to the energy-intensive nature of AI data centers.<\/p>\n<figure id=\"attachment_438898\" aria-describedby=\"caption-attachment-438898\" style=\"width: 691px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-438898\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/Screenshot-2024-08-16-102028.png\" alt=\"AI Crypto energy use\" width=\"691\" height=\"738\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/Screenshot-2024-08-16-102028.png 691w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/Screenshot-2024-08-16-102028-281x300.png 281w\" sizes=\"(max-width: 691px) 100vw, 691px\" \/><figcaption id=\"caption-attachment-438898\" class=\"wp-caption-text\">Crypto and AI Energy Use (Source: IMF)<\/figcaption><\/figure>\n<p>The IMF projects that <a href=\"https:\/\/cryptoslate.com\/bill-ackman-sparks-broad-discussion-on-bitcoins-energy-use\/\">energy consumption<\/a> from these sectors in three years could rise to 3.5%, matching Japan's current electricity use, which is the fifth-largest in the world.<\/p>\n<h2>Increase energy taxes<\/h2>\n<p>To address this, the IMF recommends a significant increase in <a href=\"https:\/\/cryptoslate.com\/lummis-slams-bidens-disastrous-proposal-to-tax-bitcoin-miners-in-orange-paper\/\">energy taxes<\/a>. It suggests governments impose an 85% hike in <a href=\"https:\/\/cryptoslate.com\/hive-to-build-massive-bitcoin-mining-facility-in-paraguay-despite-looming-energy-hikes\/\">electricity taxes for crypto miners<\/a>, equating to $0.047 per kilowatt hour or $0.089 when including air pollution costs. This measure could allegedly generate $5.2 billion annually and cut emissions by 100 million tons, roughly equal to Belgium's current emissions.<\/p>\n<p>Similarly, the IMF advises taxing data centers at $0.032 per kilowatt hour, rising to $0.052 with air pollution costs. This could help governments collect $18 billion each year.\u00a0<span style=\"color: #333333;\">They argue that data centers use less energy and often operate in areas with\u00a0<\/span><a href=\"https:\/\/cryptoslate.com\/more-than-50-of-bitcoin-mining-uses-renewable-energy\/\" target=\"_blank\" rel=\"noopener\">greener electricity<\/a> and<span style=\"color: #333333;\"> would thus face lower taxes than crypto miners.<\/span><\/p>\n<p>However, the IMF stresses that implementing these taxes would require international cooperation to prevent miners and data centers from moving to regions with cheaper energy rates.<\/p>\n<p>The IMF also suggests targeted measures to promote energy-efficient practices among crypto miners and <a href=\"https:\/\/cryptoslate.com\/hut-8-receives-150-million-boost-for-ai-data-center-expansion\/\">data centers<\/a>. These could include incentives for using more efficient equipment, adopting less energy-intensive mining methods, and complementing taxes with credits for zero-emission power agreements or renewable energy certificates.<\/p>\n<p>Shafik Hebous, the deputy division chief of the IMF Fiscal Affairs Department, and Nate Vernon-Lin, an economist in the climate policy division, authored the report.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The International Monetary Fund (IMF) has proposed higher energy taxes to reduce emissions from crypto miners and artificial intelligence (AI) data centers, according to an Aug. 15 report. Daniel Batten, the Managing Partner at CH4Capital, has issued a strong rebuttal to the report on his X (formerly Twitter) account, stating, &#8220;Bitcoin mining has significant environmental [&hellip;]<\/p>\n","protected":false},"author":720,"featured_media":438912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[78326,2376],"tags":[77199,77123],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IMF proposes 85% power tax hike on crypto and AI data centers<\/title>\n<meta name=\"description\" content=\"Crypto miners and AI data centers should face higher energy taxes, IMF suggests.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF proposes 85% power tax hike on crypto and AI data centers\" \/>\n<meta property=\"og:description\" content=\"Crypto miners and AI data centers should face higher energy taxes, IMF suggests.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-16T11:30:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-16T13:28:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2024\/08\/imf-mining-energy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Oluwapelumi Adejumo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Oluwapelumi Adejumo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/imf-proposes-85-power-tax-hike-on-crypto-and-ai-data-centers\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#person\",\"name\":\"Oluwapelumi Adejumo\",\"url\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/oluwapelumi-adejumo\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/12\/profile-photo-oluwapelumi-adejumo-300x300.jpg\",\"caption\":\"Oluwapelumi Adejumo\"},\"jobTitle\":\"Senior Reporter\",\"description\":\"Oluwapelumi values Bitcoin's potential. 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