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A report by the Environmental Protection Network says federal regulatory changes on data center backup generators and turbines are adding to air pollution health risks, with pollution from data centers potentially contributing to nearly 600,000 asthma cases, 1,300 premature deaths and almost $21 billion in healthcare costs by 2028. The report cites 30 federal regulatory actions it says weaken pollution safeguards.
A new report by the Environmental Protection Network, a nonprofit whose members are former public officials, says federal regulatory changes affecting data center backup power and electric grid operations are contributing to increased public health risks, with data center air pollution projected to add almost $21 billion in healthcare costs by 2028, roughly 600,000 asthma cases and about 1,300 premature deaths.
The report, titled “Hidden Health Costs of AI Data Centers,” attributes much of the projected health risk to federal regulatory changes intended to help utilities meet surging data center electricity demand — including actions that expand coal use and keep combustion-based power plants online rather than phasing them out. But a portion of the risk, the group says, comes from regulatory changes that make it easier for data centers to run on-site backup generators and turbines.
“These engines and turbines can emit nitrogen oxides, smog-forming volatile organic compounds, and soot pollution,” the report states, adding that “the combined generating capacity of a large generator or turbine fleet can rival that of a conventional power plant.”
In Virginia, a major data center hub, emissions from on-site generators emitting just 10% of permitted levels would contribute to roughly 14,000 asthma symptom cases, 13 to 19 premature deaths and $220 million to $300 million in annual public-health costs, according to the report, which draws on estimates released earlier this year by researchers. The report lists 30 federal regulatory actions it says risk increasing data center pollution.
Health Costs of Loosened Backup Rules
The findings matter because backup generation, historically reserved for emergencies, is increasingly being used for routine grid support — shifting pollution closer to communities near data centers. Three regulatory actions are cited as drivers. First, an EPA rule finalized this year created a category of small and medium temporary turbines that can stay on site for up to two years with substantially reduced monitoring, recordkeeping and reporting requirements. The report estimates this will result in 89% more nitrogen oxide released annually than under a more restrictive 2024 version of the rule that the Trump administration scrapped.
Second, an EPA interpretive letter released last year allows operators of on-site emergency generators to participate in utility demand-response programs. Third, the U.S. Department of Energy issued an emergency order in May authorizing PJM Interconnection to use backup generation at data centers and other major facilities during grid stress. “Their use during heat waves and other periods of grid stress adds smog-forming nitrogen oxides and fine-particle soot pollution at times when extreme heat and existing air pollution already place people at greater risk,” the report says.
Permitting Disputes and Prior Safeguards
The report points to a high-profile lawsuit against xAI over its data center in Southaven, Mississippi, which centers on whether the company obtained appropriate permits for temporary or mobile on-site turbines used for backup power. “The company and Mississippi regulators dispute that a permit was required,” the report says, calling the dispute an illustration of why clear permitting requirements and consistent enforcement matter as equipment labeled “backup,” “temporary,” or “mobile” is used more extensively.
The report also notes actions affecting non-utility power plants, including a rule exempting private power facilities from acid rain program permits, emissions requirements and standardized reporting. “Before 2025, stronger pollution safeguards, planned fossil-plant retirements, and expanding cleaner power were on track to constrain additional pollution from rising demand,” the report says.
“These engines and turbines can emit nitrogen oxides, smog-forming volatile organic compounds, and soot pollution… The combined generating capacity of a large generator or turbine fleet can rival that of a conventional power plant.”
— Environmental Protection Network, ‘Hidden Health Costs of AI Data Centers’ report
Limits of the Estimates
The projections are the Environmental Protection Network’s estimates, not measured health outcomes, and depend on modeling assumptions about future data center growth and generator use. The Virginia figures rely on earlier estimates by outside researchers and assume generators emit 10% of permitted levels — actual emissions may differ. The report also does not mention, as an analysis by the compliance company BackupPower AI points out, that the EPA’s demand-response interpretive letter is limited to generators operating within a local balancing authority and “does not extend to Regional Transmission Organizations (RTOs) or Independent System Operators (ISOs).” Regulators and companies, including xAI and Mississippi officials, dispute elements of the permitting concerns the report raises. EPA and DOE have not responded to the report’s conclusions in the source material.
Enforcement and Permitting Fights Ahead
The xAI lawsuit over the Southaven turbines is ongoing and could clarify when backup or mobile generation requires permits. The EPA’s temporary turbine rule and the DOE’s PJM emergency order are expected to face continued scrutiny from public health and environmental groups, and additional grid emergencies could prompt more emergency orders authorizing backup generation use. Watchdogs will be tracking whether data center operators expand demand-response participation and whether monitoring and reporting gaps under the new turbine category affect enforcement.
Key Questions
What does the report say data center pollution will cost in health terms?
The Environmental Protection Network estimates data center air pollution could increase healthcare costs by almost $21 billion by 2028, contributing to roughly 600,000 asthma cases and 1,300 premature deaths.
How does backup power specifically add to the risk?
Backup engines and turbines emit nitrogen oxides, volatile organic compounds and soot. Regulatory changes now allow some of this equipment to run with reduced monitoring, or to be used for demand-response and grid emergencies, increasing runtime near communities.
Which regulatory changes does the report highlight?
An EPA rule creating a category of temporary turbines with reduced requirements, an EPA interpretive letter allowing backup generators in demand-response programs, and a May DOE emergency order letting PJM call on backup generation during grid stress.
What is the xAI Southaven dispute about?
A lawsuit questions whether xAI needed permits for temporary or mobile turbines at its Mississippi data center. The company and Mississippi regulators dispute that a permit was required, according to the report.
Are the health figures confirmed outcomes?
No. They are model-based projections by the Environmental Protection Network and, for Virginia, earlier estimates by researchers. Actual emissions and health effects will depend on how much backup generation is built and run.
Source: rss
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