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October 26, 2026

EPA proposal may allow data centres to conceal emissions

EPA Moves to End Mandatory Public Engagement on Air Pollution Permits

The US Environmental Protection Agency (EPA) under the Trump administration is on track to abolish a federal regulation that mandates public notice and feedback opportunities for certain industrial site air permits, affecting data centers among other industries. This change comes amid growing opposition to new data centers from local communities.

The proposed removal of the public consultation requirement concerns the New Source Review process, which has been a regulatory standard since the 1970s. This process, applicable to various facilities including landfills and power plants, now extends to data centers as a result of rising generative AI demands. Elimination of the federal rule would delegate the decision of public notification to state and local authorities, a move criticised by environmental advocates as potentially diminishing transparency.

Keri Powell from the Southern Environmental Law Center expressed concern, highlighting that this adjustment could expedite data center development without community knowledge or input. EPA Administrator Lee Zeldin argued that states and local governments are better positioned than federal bodies to handle these matters, and this reform aims to reduce federal oversight perceived as unnecessary.

The change targets ‘minor’ pollution sources, which the EPA claims have limited environmental impact. However, critics argue that this classification is often misleading, and many projects labeled as ‘minor’ can significantly affect local environments.

An example of controversy is xAI’s 2025 project in Tennessee, which applied for a minor source permit, prompting thousands of public comments and a threatened lawsuit over unpermitted equipment installation. Advocacy organisations, including the Southern Environmental Law Center and the NAACP, oppose the EPA’s proposal, emphasising the importance of community input to inform regulatory decisions.

The deadline for public comments on the proposal has recently passed, with the EPA receiving over 4,900 responses to review before finalising its rule. The outcome will determine how future industrial developments, particularly data centers, engage with the communities they impact.

Reporting based on coverage first published by theverge.com.