Datacenter developers accused of bypassing pollution and energy regulations

Environmental advocates and legal groups are accusing datacenter developers of using regulatory maneuvers to bypass air pollution and energy oversight requirements. In the United States, critics allege that some big tech companies are avoiding “major” federal reviews by dividing emissions sources into multiple “minor” sources. This practice, described by a former EPA official as “lego permitting,” allows facilities to avoid stricter scrutiny and the costs associated with pollution controls.

Specific instances cited include Amazon and Duke Energy in North Carolina, where developers submitted two permits for diesel generators to avoid a major review, and Project Jupiter in New Mexico, which proposed natural gas microgrids to circumvent oversight. In Maryland, multiple datacenters operate on a single campus using separate minor permits.

In South Carolina, the Southern Environmental Law Center (SELC) has petitioned the Public Service Commission to reconsider a decision regarding the NorthMark and Valara datacenters in Spartanburg. The commission previously ruled that the state’s Siting Act, which requires permission for power generation over 75 megawatts, does not apply to datacenters that generate power for their own use. The SELC argues this decision allows large private power plants to be built without necessary oversight.