AI Meets NEPA: White House Plan Proposes Sweeping Deregulatory Shift for Data Centers

In a significant policy turn, the White House has unveiled its AI acceleration plan—complete with a call to ease or eliminate numerous environmental permitting requirements for data centers, chip fabs, and energy infrastructure. The July 23 report proposes using executive authority to fast-track construction of AI-related facilities by reforming NEPA, Clean Water Act, and Clean Air Act processes—building on Trump-era efforts to streamline environmental reviews for industrial development.

Key proposals include:

• New Categorical Exclusions (CEs): Agencies would be encouraged to adopt broad, standardized exclusions from NEPA review for data centers—sidestepping project-specific environmental assessments.

• General Clean Water Act Permits: The plan suggests creating a nationwide §404 permit specifically for data centers, with no pre-construction notice requirement.

• Streamlined CAA, CERCLA, and CWA Rules: EPA is directed to reduce regulatory burdens under core environmental statutes to enable rapid development of AI infrastructure.

• Prioritized Federal Land Use: Agencies are urged to identify and release federal land—including brownfields—for energy and data center development.

• Expanded FAST-41 Access: The plan recommends broadening eligibility for FAST-41 permitting reform to cover data centers and related power projects.

  
  

EPA Administrator Lee Zeldin has already signaled movement on some of these priorities, including an overhaul of New Source Review under the Clean Air Act to accelerate siting of power infrastructure.

The report frames these moves as essential to national security and economic competitiveness, with Trump officials warning of an “AI arms race” and lamenting the stagnation of U.S. energy infrastructure. “AI is the first digital service in modern life that challenges America to build vastly greater energy generation than we have today,” the report says.

What Comes Next

For companies navigating environmental permitting for high-energy infrastructure—especially in the AI, semiconductor, and data sectors—this plan signals a potential sea change. If implemented, it could dramatically compress project timelines by reducing environmental review obligations and shifting more permitting decisions toward blanket federal authorizations.

However, questions remain. The report does not clarify which recommendations require congressional approval versus what can be done via executive action. It also lacks details on community, tribal, and stakeholder engagement—or how cumulative environmental impacts would be addressed.

Environmental advocates are already raising concerns about fast-tracking carbon- and resource-intensive development. Industry, meanwhile, sees an opening to modernize permitting in line with the infrastructure demands of the digital age.

The Takeaway:

If your organization is planning data center construction, energy siting, or other infrastructure tied to AI deployment, now is the time to review your permitting strategy. Proactive legal counsel can help anticipate regulatory shifts and position projects to benefit from new streamlined pathways—while avoiding costly pitfalls down the road.