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ARTICLE · 23 JUNE 2026

EPA Hands Over AI Data Center Regulation To States And Communities To Develop Best Practices

Crowell & Moring LLP
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Crowell & Moring LLP

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The nation’s power grid and infrastructure are facing increased pressure from artificial intelligence (AI) data centers, prompting new questions around environmental regulatory design and compliance.

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What You Need to Know

  • Key takeaway #1

    EPA’s decision not to set nationwide environmental standards for AI data centers eliminates a potential layer of regulatory complexity but does not suspend existing environmental obligations.

  • Key takeaway #2

    With EPA stepping back, citizen suits under the Clean Air Act and Clean Water Act may increasingly become a tool for environmental advocates and a threat to data center developers and operators.

  • Key takeaway #3

    Without a national permitting mandate, data center developers will likely face an increasingly inconsistent patchwork of state and local environmental, permitting, and land use requirements across jurisdictions, requiring vigilant attention to regulatory updates.

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