Trump's EPA moves to limit public oversight of data centers

The US Environmental Protection Agency (EPA) is moving to scrap a federal requirement that mandates public notice and comment periods when industrial facilities apply for minor air pollution permits. This permitting process, known as the New Source Review, has been in place since the 1970s. Under the new proposal, the federal requirement would be eliminated, leaving it up to state and local air agencies to decide whether to notify communities about new pollution sources. EPA Administrator Lee Zeldin defended the decision, stating that the agency is "cutting unnecessary and burdensome red tape" by letting local authorities make these decisions.

Environmental advocates warn that the change will allow developers to build massive, power-hungry AI data centers without community input. Keri Powell, a senior attorney at the Southern Environmental Law Center (SELC), warned that the policy could allow developers to secure permits in secret, meaning "nobody knows what's happening until the bulldozers are out there." While the EPA classifies these projects as minor sources with low emissions, advocates argue the label is misleading because the cumulative impact on local neighborhoods can be severe.

The tension surrounding these permits is already evident in projects like xAI's Colossus 1 data center in Tennessee. Billed as a massive AI training system, Colossus 1 applied for a minor source permit in 2025, which triggered a public hearing and drew thousands of community comments. The SELC and the NAACP even threatened to sue xAI that same year over the installation of unpermitted gas turbines at the site.

Opponents are fighting to keep the federal rules intact. Last week, the SELC joined nearly 200 health and environmental groups in submitting formal comments urging the EPA to withdraw the proposal. Byron Gary, an attorney for the Kentucky Resources Council, noted that without public input, agencies will lack the "lived experience data" needed to evaluate environmental impacts. EPA spokesperson Carolyn Holran confirmed that the agency is currently reviewing more than 4,900 comments submitted before the public comment period closed.