reducing energy costs

December 29, 2025

 

On December 11, 2025, the U.S. Environmental Protection Agency (EPA), Office of Air and Radiation (OAR), launched a new webpage entitled the Clean Air Act Resource for Data Centers. The site centralizes regulatory data, modeling tools, and permitting guidance. Designed to accelerate data center construction, the OAR staff is also available for case-by-case consultations with permit authorities and developers. The website has three primary categories:

Regulator Resources: Focuses on power sources, a major concern for planning data centers and AI infrastructure. Common sources of primary and backup power are subject to New Source Performance Standards (NSPS) for certain air emissions and National Emission Standards for Hazardous Air Pollutants (NESHAP).

Air Permitting Resources: Aggregates guidance documents and historical interpretation letters to see how EPA has handled similar permitting requests in the past, offering a clearer picture of statutory obligations under New Source Review (NSR) requirements and federal regulations.

Modeling Guidance: Provides access to the EPA’s “Guideline on Air Quality Models,” offering technical methods for demonstrating Clean Air Act (CAA) and NO2 National Ambient Air Quality Standard (NAAQS) compliance during planning.

The EPA initiative aims to help businesses and communities navigate federal air quality rules, specifically under the Clean Air Act (CAA) requirements that EPA acknowledges are essential for pollution control. Officials stated the webpage will be updated continuously as the agency moves to reform industry guidance for data center developers.

The EPA did not specify what it intends to change, but said it will clarify how the regulations apply to modern facilities. The administration contends that streamlined development will ultimately protect consumers from rising electricity rates and cost-of-living increases.

According to the Georgetown Law Review, Bloomberg, and Utility Dive, communities and states that allow data center growth are experiencing substantial increases in utility costs, up to 267% over five years [1].

While it is not unusual for local taxpayers to cover part of the infrastructure costs, many consumers were unaware of just how substantial those costs are for data centers [2].

According to the Georgetown Law Review, there is currently no concise federal framework for regulating data center development, leaving regulation largely up to the individual states. However, a bill introduced by Senators Whitehouse and Fetterman, the Clean Cloud Act of 2025, would amend the Clean Air Act to set emissions standards for servers and other equipment used in data centers or crypto-mining facilities, and to require data collection on energy consumption. The Senate read the proposed bill and then referred it to the Committee on Environment and Public Works [3].

Electrical systems and ongoing energy systems account for the lion’s share of capital expenses and operational costs. There is a cost of land, but companies are now seeking to use Brownfields to obtain parcels closer to urban areas with more infrastructure.

The environmental impacts discussed here affect air quality because the massive amounts of electricity data centers consume to crunch data and keep systems cool are primarily generated by fossil fuels. Total global consumption of electrical power by data centers is anticipated to jump, with AI-optimized centers expected to see demand quadruple; AI’s share of data center power could rise from 5-15% to 35-50% by 2030 [4].

Our dependence is driving up carbon emissions and exacerbating global warming issues. Developing greener cooling methods for data centers will help minimize environmental impacts on air quality and reduce strains on local water resources for cooling [5]. That’s where SCS Engineers can help.


For more than five decades, SCS Engineers has helped industrial and infrastructure clients navigate complex environmental challenges — from permitting and regulatory compliance to energy, water, and air quality solutions. Our experience spans power generation, advanced manufacturing, resource recovery, and large-scale infrastructure projects, where we help transform operational challenges into cost-effective, sustainable outcomes. This depth of industrial expertise demonstrates that the U.S. can continue to lead in technology and innovation while responsibly protecting natural resources.

As your state or community looks toward supporting the U.S.’s technology future, know that there is an environmental engineering, consulting, and construction firm that finds a way to sustain business growth and protect our environment. Reach out to one of our Energy Management Professionals. We’re happy to help.

 

 

 

 

 

Posted by Diane Samuels at 6:00 am
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