Data center firms seek exemptions from U.S. pollution rules

Data center developers in Utah and elsewhere have requested exemptions from federal pollution regulations to meet the surging energy demands of artificial intelligence infrastructure. Companies like Novva and Thunderhead argued that such relief is essential for national security amid competition with China. Although the requests highlight the industry's challenges, none appear to have been granted for these projects.

In March 2025, Novva, a developer building a large data center campus south of Salt Lake City, Utah, appealed to the Environmental Protection Agency (EPA) for a presidential exemption from Clean Air Act standards. The company sought permission to operate 96 diesel generators without emission limits for two years while completing a 200-megawatt natural gas plant, approved by the Utah Department of Environmental Quality in December 2024. Novva's CEO, Wes Swenson, stated in a letter that the exemption would support U.S. AI supremacy, noting concerns over China's DeepSeek-R1 model. "We ask that you provide this exemption to assist in ensuring the United States’ AI supremacy," the letter reads.

Rocky Mountain Power, Utah's main utility, cannot supply the required power until 2031, prompting Novva to initially plan diesel- and gas-fired generators. State permits from the Utah Division of Air Quality limit diesel operations to 42 hours annually and cap emissions for gas units. Swenson told Grist he received no response from federal authorities and that current power comes primarily from the grid.

Novva was one of two data center firms among hundreds of exemption requests obtained via Freedom of Information Act filings, mostly from coal plants and manufacturers. Thunderhead Energy Solutions requested relief for 11 data centers totaling 23 gigawatts across Texas, Montana, and Illinois, proposing a 5,000-megawatt gas plant in West Texas—larger than the state's biggest facility. No status update was available for Thunderhead.

The EPA required applicants to show unavailable compliance technology and national security benefits. An Environmental Defense Fund analysis of over 500 requests found about one-third granted. These pleas underscore broader challenges in Utah's data center boom, with at least 15 new sites planned since 2021. Developers like Joule Capital Partners plan natural gas generators for a 4,000-acre site in Millard County, aiming for up to 4 gigawatts, while Creekstone Energy targets 10 gigawatts nearby.

Utah's Wasatch Front faces winter inversions and summer ozone issues, exacerbated by such fossil fuel reliance. State law Senate Bill 132 allows private generation over 100 megawatts off-grid. Officials like Governor Spencer Cox promote nuclear via Operation Gigawatt, but renewables lag amid federal policy shifts. Environmentalists worry about reversing air quality gains, with Utah Clean Energy's Logan Mitchell noting, "They’re eating into all of the progress we’ve made."

Swenson emphasized data centers' role: "American data should stay in America." Yet, the Salt Lake City area's pollution vulnerabilities persist, as a Utah Division of Air Quality spokesperson was unaware of Novva's federal bid.

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