The Trump administration has exempted data centers from pollution limits designed to prevent acid rain. Power plants primarily serving these "islanded" data centers will no longer be required to reduce emissions of sulfur dioxide and nitrogen oxides under the Clean Air Act's Acid Rain Program (ARP).

Nearly 60 such power plants are being built or are operational nationwide. EPA Assistant Administrator Aaron Szabo stated this exemption supports national security and economic prosperity by maintaining U.S. AI dominance. Data centers are projected to account for 20 percent of national energy usage within eight years, raising concerns about potential increases in acid rain, which is known to damage ecosystems and human health.

The EPA justifies the exemption by arguing that ARP policies apply only to electric utilities, and data center power plants do not serve the public. This decision is also framed as a cost-saving measure for energy bills, though research on its economic impact is mixed. This exemption follows previous instances where the Trump administration has favored AI data centers over environmental concerns, including backing Elon Musk's x AI.