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The US government is set to mandate that cryptocurrency mining companies report their energy consumption. This initiative, led by the Energy Information Administration (EIA), aims to gather detailed data via a survey on the energy usage of commercial cryptocurrency miners starting next week.

According to Joe DeCarolis, the EIA Administrator, this survey focuses on understanding the changing energy demands of cryptocurrency mining, pinpointing areas of significant growth, and assessing the types of electricity sources utilized for mining activities. This effort has been launched following an “emergency collection of data request” authorized by the White House Office of Management and Budget.

Cryptocurrency mining, a process that involves solving complex puzzles to unlock new digital currencies, has surged in the US, particularly after China’s crackdown on the practice in 2021. The EIA’s preliminary findings indicate that cryptocurrency mining’s electricity consumption could rival that of entire states, such as Utah and West Virginia, accounting for 0.6% to 2.3% of total US electricity use.

This escalation in energy demand has not only brought idled fossil fuel plants back into operation but has also raised concerns about the potential for higher electricity costs, increased carbon emissions, and the overall strain on the nation’s electrical grid. Democratic lawmakers have also voiced concerns regarding the environmental and climate ramifications due to crypto mining.