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EPA says data-center power can be exempt from Acid Rain Program
The EPA said power plants that feed only data centers, not the public grid, would fall outside the Acid Rain Program, with the goal of easing grid strain from surging data-center electricity demand.
The U.S. Environmental Protection Agency said July 27 that power sources supplying electricity only to data centers and not the public grid may not be subject to federal pollution laws, under an interpretation of the Clean Air Act Acid Rain Program.
In a July 16 letter, EPA Assistant Administrator Aaron Szabo said the Acid Rain Program does not apply to power generation facilities that are not connected in any way to the larger electricity grid. The agency described this as guidance for so-called “islanded” power generation facilities that operate separately from the broader grid.
The EPA said the guidance is intended to speed development of artificial intelligence infrastructure while reducing strain on regional electric grids. It also said the clarification gives developers more flexibility in how and how quickly they can build new data centers.
The agency linked the move to President Donald Trump’s Ratepayer Protection Pledge, which was expanded last week and is expected to shift energy costs associated with new projects toward participating developers, utilities and state regulators rather than residential customers, according to the EPA.