The U.S. Environmental Protection Agency (EPA) issued guidance clarifying that the Clean Air Act (CAA) Acid Rain Program (ARP) does not apply to "islanded" power generation facilities — those not connected to the public electricity grid. This move expands opportunities for companies to develop dedicated power for data centers, offering developers greater flexibility in siting and construction speed while aiming to protect the environment and reduce strain on community grids.

The guidance aligns with President Donald Trump's expanded Ratepayer Protection Pledge, which commits companies to build, bring, or buy all energy needed for their facilities and pay full costs, extending obligations across utilities, developers, and state regulators. EPA Assistant Administrator for Air and Radiation Aaron Szabo stated the guidance supports U.S. artificial intelligence dominance and safeguards communities from utility price hikes.

EPA concluded that because islanded facilities neither sell electricity nor report to the U.S. Department of Energy (DOE) as generating units, they fall outside ARP jurisdiction. However, if such a facility later connects to the grid, it may become subject to ARP provisions.