The Environmental Journal of Southern Appalachia
Monday, 20 July 2026 19:48

EPA chief warns against data center restrictions as locals mull guardrails

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05142025 Elon Musk 090 2048x1365 Sixty data centers are operating or under construction in Tennessee, with 25 in the Nashville area. Karen Pulfer Focht/Tennessee Lookout

As Elon's turbines pollute Memphis, EPA head urges hands-off approach to data centers

This story was originally published by Tennessee Lookout.

NASHVILLE — U.S. Environmental Protection Agency Administrator Lee Zeldin called New York’s recently announced statewide moratorium on data centers an “easy way to cop out” during an appearance at the Tennessee Chamber of Commerce and Industry’s Infrastructure Summit on July 14.

Data centers — which house the computer servers and storage that power the internet, cloud computing and artificial intelligence — range in size from single rooms to massive campuses that can use as much power as an entire city. Zeldin said he’s seen both bad and good data center projects throughout the country.

The EPA recently joined the U.S. Department of Justice in petitioning to stop an environmental lawsuit filed by the NAACP against xAI, which accuses Elon Musk’s company of building a power plant composed of gas-powered turbines near the Tennessee-Mississippi border without obtaining permits to power its Colossus 2 data center in south Memphis.

The good news, he said, is that “Americans mostly want to make America the (Artificial Intelligence) capital of the world.”

“The bad news is that when they think about data centers, too often they’re only hearing about those controversial projects,” he said. But Zeldin warned communities against shutting down all data center development.

“For a local community that is thinking through bringing a data center to their area, I would encourage them to ask three questions: Is the project going to make my bills go up or down? Is the project going to be a net provider onto the grid, or a net taker? And what are they going to do with water? Is it a closed-loop data center? Is it 100 percent recyclable?” Zeldin said.

The remarks were part of a speech centered on reducing the federal agency’s regulatory power to “nothing less, but nothing more” than what federal statute spells out. 

“Every single day, we’re seeking to limit our power, but to do it responsibly to the single best reading of the law, and to help boost manufacturing,” he told summit attendees gathered in a Franklin hotel.

Zeldin announced in June that the EPA won’t set nationwide environmental standards for data centers, leaving the issue to states and communities. 

Tennessee legislators this year enacted a law stipulating that the owners of data centers requiring at least 50 megawatts of power must pay for any infrastructure upgrades needed to produce the electricity the center needs. The law also allows data centers to produce their own power without state or local oversight using equipment like gas turbines, something opponents say removes important guardrails protecting communities from pollution. Data centers can also purchase power from independent producers.

Metro Nashville Council members are considering ordinances that would limit where data centers can be located, or institute a moratorium on new projects until regulations are set. Hundreds of area residents spoke against a proposed data center project on land near the Nashville Zoo at a council meeting on July 7. Nashville Mayor Freddie O’Connell has filed eminent domain legislation to buy the property where the data center would be built, though this and other ordinances may not ultimately succeed in blocking the project.

Republican Tennessee gubernatorial candidate U.S. Sen. Marsha Blackburn also spoke against the proposed data center’s placement next to the zoo, where she once served as a board member. 

Multiple local governments in Tennessee have recently placed or considered their own temporary pauses on data center permit approvals at the behest of residents concerned about the facilities’ intensive electricity and water use and potential to cause air and noise pollution.

Zeldin did not mention concerns about noise or air pollution, particularly from gas-powered turbines sometimes used to power the centers.

Zeldin declined to comment on ongoing litigation, including about the timeline for the EPA joining the case.

The federal agency is considering eliminating its requirement for public feedback for some new or modified “minor sources” of emissions, which can include gas-powered generators used to power some data centers. Instead, state and local air quality agencies would determine “whether, when, and for how long to provide opportunities for public participation,” according to an agency news release. The EPA will hold a virtual public hearing on the proposed change on July 22.

The agency proposed another rule change in June that would allow facilities including data centers and power plants to start construction on parts of new facilities before receiving permits required under the Clean Air Act, so long as those building components alone don’t emit pollutants. The proposal was met with pushback from health and environmental organizations, who say the new rule would allow the majority of buildings to be completed before the public could weigh in or push for changes.

The EPA states that the proposed rule “is intended to provide additional flexibility” for facility owners and operators and the permitting authorities that regulate them to reduce regulatory burden and “foster economic growth.” 

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Last modified on Monday, 20 July 2026 20:21
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