Key developments
EPA proposal could narrow permit input
The U.S. EPA is proposing to give states more control over public notice and participation for minor-source air pollution permits, a category that can include backup generators and gas turbines used by AI data centers. In Texas, The Texas Tribune reported that TCEQ could rewrite participation rules if the proposal is finalized; at least 38 Texas data centers have received minor-source permits since 2024, covering more than 2,100 diesel backup generators. EPA plans a virtual hearing July 22, with registration due July 19 and written comments accepted through Aug. 21.
Why it matters
The rule could materially change how communities challenge data center on-site power systems before permits are issued.
Sources & driving stories
THE TEXAS TRIBUNE · Alejandra Martinez
The Texas Tribune coverageTENNESSEE LOOKOUT · Cassandra Stephenson
Tennessee Lookout coverageVirginia weighs shifting grid costs to data centers
Virginia State Corporation Commission regulators heard arguments on whether data center developers should pay more transmission costs through a “but-for” test for projects that would not be built without data center demand. E&E News reported Dominion Energy’s data center pipeline includes about 70,000 MW of requested demand and could require roughly 230 substations costing $6 billion to $12 billion. The proceeding is tied to Dominion’s annual transmission rider seeking about $1.5 billion, with a ruling due by Aug. 1.
Why it matters
Virginia is testing one of the clearest utility-cost allocation models for preventing data center grid expansion costs from flowing to households and small businesses.
Sources & driving stories
E&E NEWS · Adam Aton
E&E News coveragePalm Beach rejects 600 MW Project Tango
Palm Beach County commissioners voted 5-1 to deny Project Tango’s master plan expansion for a proposed western Palm Beach County hyperscale AI data center. Local 10 reported the plan called for five buildings totaling about 1 million square feet and 600 MW of power near the Arden residential community, an elementary school, an Everglades-linked canal and a national wildlife refuge. Bloomberg reported the vote effectively ended the proposed Palm Beach County siting after intense local backlash over utility bills, water, heat, noise and infrastructure strain.
Why it matters
The rejection shows local siting resistance can still stop very large AI infrastructure projects even in power-adjacent industrial zones.
Sources & driving stories
LOCAL 10 NEWS
Local 10 News coverageBLOOMBERG · Erin Hudson and Andrew Oxford
Bloomberg coverageWorth noting
WORTH NOTING
New Jersey signs demand-offset law
Gov. Mikie Sherrill signed the Data Center Fair Share Act, creating a framework for data centers to fund home energy upgrades, virtual power plant capacity and a new data center rate class, with regulator standards due within one year.
WORTH NOTING
Ohio abatements quantified
The Columbus Dispatch reported Amazon Web Services avoided $5.4 million in 2024 property taxes for two Hilliard data centers, while other Ohio data center abatements included $1.8 million in Licking County and $1.3 million for a Google site in Lancaster.
WORTH NOTING
Indianapolis approves DC Blox campus
The Metropolitan Development Commission voted 6-1 to approve DC Blox’s $2 billion brownfield campus near Irvington, revised to two buildings and 31 diesel generators, while opponents consider judicial review within 30 days.
Still unclear
OPEN QUESTION
Can regulators isolate data center-driven grid costs?
Virginia’s but-for test, New Jersey’s demand-offset law and pending federal legislation all hinge on whether utilities and regulators can credibly attribute infrastructure costs to specific large loads.
OPEN QUESTION
Will local pollution review weaken as on-site power grows?
EPA’s minor-source proposal comes as developers increasingly use diesel generators, gas turbines and phased permits, raising questions about cumulative emissions and public review.
