EPA (U.S. environmental regulator) said the guidance is meant to support data center growth and ease pressure on consumer electricity bills by encouraging dedicated power generation.
The Trump administration said Monday that power plants built solely to serve data centers and kept off the broader electricity grid will not be subject to the Clean Air Act’s Acid Rain Program. The new EPA (U.S. environmental regulator) guidance applies to so-called “islanded” plants, which the agency said do not qualify as electric utilities because they are not connected in any way to the larger grid. The Acid Rain Program requires power plants to curb emissions of sulfur dioxide and nitrogen oxides, pollutants tied to acid rain and respiratory harm. EPA said the clarification is intended to help data centers expand while limiting the effect of their electricity demand on consumer power bills by encouraging them to supply their own generation. EPA Assistant Administrator for Air and Radiation Aaron Szabo said the policy would help preserve U.S. artificial intelligence leadership while protecting communities from utility price increases. The move fits a broader administration push to prioritize data center development, including earlier efforts involving environmental reviews and backing Elon Musk’s xAI in litigation over alleged air pollution.