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The EPA will eliminate the federal mandate requiring public notices for minor-source permits related to polluting data centers.

Streamlines permitting timelines for AI campuses but raises environmental transparency concerns among local communities.
Trade pressSlicast · August 26, 2026 · Global · Source: The Register
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A proposed change by the U.S. Environmental Protection Agency (EPA) would eliminate federal minimum requirements for public participation in minor-source air permits, a move that critics warn could significantly impact datacenter projects. Under the proposal, state and local regulators would determine whether and to what extent the public receives notice or has a say in minor-source permitting decisions.

The Environmental Protection Network (EPN), composed of former EPA employees, states that the rule change would remove mandatory public notice and comment requirements for so-called minor New Source Review (NSR) industrial air pollution permits within state plans under the Clean Air Act (CAA). Instead, state and local air quality authorities would have discretion over public involvement in minor NSR programs, effectively deciding whether communities are informed about new pollution sources or modifications to existing ones.

Having submitted formal public comments on the proposal, the EPN warns that the shift would leave communities uninformed about industrial developments. These could include large-scale, fossil-fueled power generators for AI datacenters that might be classified as minor or synthetic-minor sources, allowing them to bypass more stringent major-source review processes. Without public oversight, such facilities could potentially avoid major-source pollution controls entirely.

“By eliminating the long-standing federal requirement for public notice, this proposal continues efforts by the current administration to turn its back on the fundamental EPA principle of transparency,” said Mike Koerber, former deputy director of the EPA’s Office of Air Quality Planning and Standards. Earlier this year, EPA Administrator Lee Zeldin stated that the Trump administration would not impose national-level environmental regulations on the growing datacenter industry. He argued that state and local governments are better positioned to make these decisions, given regional variations in water availability, air quality, and electricity demand.

However, the EPN notes that the current proposal directly contradicts Zeldin’s earlier transparency memorandum, which pledged that “the public must be able to trust our work” and called for “the fullest possible public participation in our decision making.” This regulatory shift occurs amid a construction boom of new server farms seeking to capitalize on the AI market. To avoid years-long delays in securing grid connections, many developers and operators are opting for on-site power generation, typically using gas-burning turbines. These installations can impact local communities through emissions of smog-generating nitrogen oxides (NOx) and other pollutants.

Public resistance to datacenters is rising, with a recent Gallup survey revealing that more than 70 percent of Americans oppose the construction of such facilities in their neighborhoods. Despite this, President Trump has increasingly voiced support for datacenter development. Responding to the Texas governor’s decision to pause new grid-connection approvals for datacenter projects, Trump warned against opposing the industry, stating, “taxes are going to go way down because this is a tremendous source of income.”

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The EPA will eliminate the federal mandate… · Slicast