Ripple effect: How data centers influence compliance strategies
The rapid growth of data centers creates new challenges for other regulated facilities. Expansion driven by artificial intelligence (AI) and cloud computing increases their impact on environmental compliance. Key areas include air permitting, attainment status, and regional power supply.
Data centers and air permitting
Data centers depend on backup power to stay online during outages. Most use natural gas or diesel generators. These units release pollutants such as nitrogen oxides (NOₓ) and particulate matter. When many generators operate together, their potential emissions can push regions close to or beyond national ambient air quality standards (NAAQS). This shift can threaten local attainment status and make it harder for nearby facilities to get new permits.
What EPA is doing
On December 11, 2025, EPA’s Office of Air and Radiation launched a “Clean Air Act Resource for Data Centers” webpage. It provides regulatory guidance, permitting tools, and technical letters. The goal is to make air permitting for data centers faster and more transparent while protecting air quality.
Why this matters for other regulated facilities
- Attainment status at risk
Large data centers add cumulative emissions from multiple generators. Even permitted emissions from nearby plants can combine and push an area into nonattainment. That change triggers stricter air permitting rules for everyone.
- Power demand competition
Data centers use large amounts of electricity. They often need on-site generators or new grid connections. This can strain local power supplies. In some cases, grid operators give data centers priority during peak demand, leaving other facilities with less reliable power.
- Stricter air quality modeling requirements
Some states now require detailed modeling for backup generators. For example, Illinois reviewed 34 generators for one data center before granting a permit. If modeling shows high emissions, regulators may limit operating hours or require extra controls.
Broader regulatory shifts
EPA recently updated its interpretation of New Source Review (NSR) rules. In September 2025, the agency said construction can start before full air permits are issued, as long as emission-related work waits for approval. This speeds up projects but makes it harder for neighboring facilities to predict cumulative emissions early.
What non-data center facilities should do
- Stay informed
Watch for new data center projects in your area. Their emissions could affect your permits.
- Engage early
Join public comment periods for data center permits. Push for full modeling of combined impacts.
- Plan for power
Work with grid operators. Understand how demand-response programs and EPA’s “50 Hour Rule” for emergency generators affect your reliability.
- Choose sites wisely
Consider locating new projects in areas with robust infrastructure and cleaner attainment status. Data centers might compete for the same grid upgrades or site approvals.
Key to remember: Data centers are more than tech hubs. They influence air permitting and power allocation. Their growth can affect your ability to expand, or even operate, under current compliance rules.














































