EPA Eases Rules as States Block AI Data Centers

The United States Environmental Protection Agency issued guidance exempting islanded power plants—facilities built to serve a single site like a data center—from the Clean Air Act’s Acid Rain Program. The agency also proposed removing public notice and comment requirements for minor pollution sources to accelerate the construction of power infrastructure needed for generative AI. Federal officials stated the move is intended to reduce administrative burdens and support energy dominance.

State and local governments are reacting to the resulting grid strain with restrictive measures. In Maryland, Harford County enacted a permanent ban on data centers, while Baltimore City, Howard County, Baltimore County, and Frederick County implemented temporary pauses to study environmental and energy impacts. Maryland Governor Wes Moore supports development only if projects fund their own infrastructure, though lawmakers recently overrode his veto of a statewide impact study.

Similar restrictions have emerged in other states. Pennsylvania Governor Josh Shapiro implemented a moratorium on AI data centers that do not provide their own power, and Texas Governor Greg Abbott blocked new data centers from connecting to the state grid. Despite these hurdles, massive energy projects continue, including a 9.2-gigawatt plant for OpenAI in Ohio and a 7.65-gigawatt plant for Amazon in Texas.