EPA says power for data centers can sidestep pollution laws

The EPA has clarified that “islanded” power generation facilities serving data centers—those not connected to the public grid—are generally outside the Clean Air Act’s Acid Rain Program, potentially making it faster and easier for companies to secure dedicated power for new AI and cloud infrastructure. For CIOs and technology leaders, this could expand site-selection and deployment options while shifting more responsibility to enterprise IT and infrastructure teams to evaluate on-site generation, energy economics, permitting risk, and the consequences if facilities later connect to the grid.