What is New Source Review?

It is a permitting process in place since the 1970s that applies to facilities like landfills, paper mills, and power plant expansions. The EPA's proposed changes would eliminate the federal public participation requirement for certain 'minor' sources of pollution.

How does this affect data centers?

Data centers and power plants built for them have become a flashpoint for opposition. Under the proposal, state and local agencies would decide whether to notify the public about new pollution sources, which advocates fear could lead to secret permitting and construction without community input.

AI Regulation & PolicyThe Verge AIAug 28, 2026Aug 29, 2026, 04:00 JST

EPA plan would let data centers skip public air permit notices

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3 Key Points

What happened
The US Environmental Protection Agency (EPA) has proposed eliminating a federal rule that requires public notice and comment when certain industrial sites, including data centers, apply for air permits. The change would leave it to state and local agencies to decide whether to notify the public.
Why it matters
Advocates warn this would let data center developers break ground without giving nearby residents a say or warning. The Southern Environmental Law Center (SELC) says the 'minor' source label is a misnomer, as projects like xAI's Colossus 1 data center in Tennessee can have significant consequences for neighbors.
What to watch
The public comment period ended last week, with more than 4,900 comments submitted. The EPA is still reviewing them before it can finalize the rule, and nearly 200 health and environmental groups have filed comments asking the EPA to withdraw its proposal.

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Context & Analysis

The EPA's proposal to end federal public participation for minor-source air permits comes as new data centers face growing backlash from neighboring communities. The rule, in place since the 1970s, has been a key venue for public opposition to AI infrastructure, as seen with xAI's Colossus 1 data center in Tennessee, which drew thousands of comments and a threatened lawsuit over unpermitted gas turbines.

EPA administrator Lee Zeldin framed the change as cutting red tape and letting state and local authorities decide, arguing that Washington should not make these decisions. However, SELC and other groups argue that air pollution crosses state lines, and public comments provide crucial 'lived experience data' that helps permitting agencies evaluate cumulative impacts. With over 4,900 comments submitted and nearly 200 groups asking for withdrawal, the outcome remains uncertain.

FAQ

What is New Source Review?: It is a permitting process in place since the 1970s that applies to facilities like landfills, paper mills, and power plant expansions. The EPA's proposed changes would eliminate the federal public participation requirement for certain 'minor' sources of pollution.
How does this affect data centers?: Data centers and power plants built for them have become a flashpoint for opposition. Under the proposal, state and local agencies would decide whether to notify the public about new pollution sources, which advocates fear could lead to secret permitting and construction without community input.

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