Tough luck, Elon - EPA shuts loophole that lets hyperscalers quickly deploy power generators without needing a permit

• EPA removes generator exemptions, forcing hyperscalers to follow strict federal air rules
• Portable turbines used by xAI now need full permits before operation
• AI data centers face delays as grid alternatives require federal approvals

The US Environmental Protection Agency has introduced a rule that removes exemptions for gas turbine generators, closing a loophole which allowed the rapid deployment of temporary power systems.

The change affects hyperscalers which rely on portable turbines to supply electricity before their sites received full grid connections.

Going forward, companies that previously benefited from local ordinances can no longer bypass federal requirements, meaning all gas turbines, regardless of duration or size, now require air permits under the Clean Air Act.