Environmental Groups Accuse Data Center Developers of Permit Splitting

Environmental advocates are accusing data center developers of using a strategy called lego permitting to bypass stringent United States Environmental Protection Agency air pollution rules. By dividing emissions sources into multiple minor permits rather than a single major source, companies allegedly avoid costly pollution controls, lengthy regulatory reviews, and public scrutiny.

In North Carolina, Amazon and Duke Energy are accused of splitting permits for 649 diesel generators located in a high-pollution area. Amazon denies these allegations, stating that the separate permitting reflects the actual ownership and operational structure of the projects. The Southern Environmental Law Center argues that state regulators failed to protect public health by accepting company statements without investigating the facts.

Similar patterns have emerged in other states. In New Mexico, BorderPlex attempted to split Project Jupiter into two natural gas microgrids to stay under the 25-ton hazardous air pollution limit for minor permits, though the developer withdrew the application in April following opposition. In Maryland, four facilities at a data center campus in Frederick are currently operating under separate minor permits. Critics warn that these practices may expose residents to increased risks of respiratory and heart diseases.