The EPA issued a memo on July 16 exempting « islanded » power generation facilities from Acid Rain Program regulations under the Clean Air Act. These self-contained plants serving a single private consumer like a data center without connecting to the public grid are no longer subject to sulfur dioxide and nitrogen oxides emissions caps. The example cited is a 500 MW natural gas facility designed exclusively to power a single data center, enough electricity to supply roughly 375,000 homes. Under EPA Administrator Lee Zeldin, the agency has been streamlining air permitting for data centers, and the clarification could also benefit Bitcoin mining operations. Risks remain, including environmental litigation and state-level regulations that could replicate ARP requirements.
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