During a recent event in Pittsburgh, Pennsylvania focusing on artificial intelligence and fossil fuels, President Donald Trump declared that Environmental Protection Agency (EPA) Administrator Lee Zeldin was “the most important man of the day.” Trump humorously noted that Zeldin would soon facilitate the permitting process for a massive electric power plant. Following this event, the Trump administration exempted several industrial facilities, including coal-fired power plants and semiconductor manufacturing sites, from air pollution regulations established during the Biden administration.
If Trump’s vision plays out, the future of data centers could be less environmentally friendly. His agenda appears to favor dismantling renewable energy initiatives and promoting coal and natural gas as energy sources for data centers which consume large amounts of electricity.
Trump emphasized the higher costs associated with environmentally friendly practices during an October 2024 interview with Joe Rogan. Zeldin, upon taking over the EPA, expressed his intent to prioritize “unleashing U.S. energy dominance” while promoting the United States as a leader in AI. On July 18th, the EPA announced significant layoffs that included the disbandment of its research and development sector.
“It costs much more to do things environmentally clean.”
At the Pennsylvania Energy and Innovation Summit, Trump highlighted private investments of approximately $36 billion for data center projects and $56 million for new energy infrastructure. This initiative indicates the administration’s desire to establish Pennsylvania as a significant hub for AI data centers, particularly given its strategic importance as a swing state and a leading producer of coal and natural gas.
Former President Joe Biden had initiated a transformative plan aimed at transitioning the U.S. energy grid to carbon-free sources by 2035, complemented by the Inflation Reduction Act that incentivized renewable energy development. Had it remained effective, analysts projected this law would reduce greenhouse gas emissions significantly by the end of this decade.
This legislation was timely for tech companies, fueling the expansion of data centers amid the booming AI market. However, ongoing political maneuvers by Trump and Republican lawmakers are hindering the growth of renewable energy projects by dismantling Biden-era tax incentives for solar and wind initiatives.
While announcing plans for new data centers, Trump contended that these facilities would not be powered by renewable resources such as wind energy. His administration is working on directives that would promote the use of coal for energy, echoing a previous campaign slogan to “drill, baby, drill.” He cited plans for a gas plant at the Homer City Generating Station that will support the new data center.
Deals highlighted during the summit included substantial investments by Enbridge and Equinor, aimed at expanding Pennsylvania’s gas pipeline network and increasing natural gas production at local facilities.
Data centers are accelerating the construction of gas power plants and pipelines in the Southeastern U.S., with Virginia’s data center hub processing a significant share of global internet traffic. Although AI technologies may grow more efficient over time, their current electricity demands could significantly reinforce the reliance on fossil fuels for energy.
Zeldin’s role primarily involves removing regulatory barriers that could impede energy infrastructure growth. He has indicated that projects should proceed ahead of obtaining emissions permits, while the administration is pursuing revisions to the Clean Air Act that could impact greenhouse gas regulation.
Furthermore, the EPA plans to minimize public participation in the permit process for smaller polluters. A newly introduced AI Action Plan aims to expedite data center development by relaxing requirements imposed by the National Environmental Policy Act.
Nonetheless, Trump’s pro-fossil fuel approach faces challenges. High demand for gas turbines and the comparatively quicker and more cost-effective nature of solar and wind projects may prompt developers to complete renewable initiatives before existing incentives fully lapse. Additionally, there is potential for optimizing data centers’ operational schedules to align with renewable energy generation patterns.
However, the current outlook suggests a race to establish energy connections, with developers prioritizing proximity to population centers over renewable resources. Energy consultants warn that the push for AI is indeed leading to increased fossil fuel consumption and deterring climate progress, while notable tech companies are still struggling with rising greenhouse gas emissions despite commitments to renewable energy purchases.
Industry experts contend that while tech giants could meet their sustainability objectives, current policies under the Trump administration are allowing them to sidestep accountability.
