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The EPA has issued guidance that weakens enforcement of the Clean Air Act's most potent mechanism for monitoring power plant emissions. The move effectively sidelines continuous emissions monitoring systems – the statutory requirement that power plants measure and report pollution in real time – in favour of less rigorous alternatives.
This matters because data centre operators, facing surging electricity demand from AI infrastructure, are now incentivised to build their own on-site power generation. Without mandatory real-time monitoring, these facilities can operate with minimal transparency around actual emissions. The EPA's shift creates a regulatory blind spot precisely when data centre energy consumption is accelerating fastest.
This is greenwashing by infrastructure. Companies can claim renewable power integration or efficiency gains while actual scope 1 and 2 emissions remain unmeasured and unreported. Without continuous monitoring, corporate net-zero commitments relying on data centre energy become unverifiable. The Clean Air Act's strength lay in its refusal to accept self-reported figures. Weakening that mechanism hands the advantage to operators with least incentive to disclose.
For organisations with scope 3 emissions tied to cloud computing or colocation, this regulatory erosion means supplier transparency will deteriorate. You cannot verify what isn't measured. The guidance signals that growth in energy-intensive infrastructure will outpace accountability – a calculation that favours short-term deployment over enforceable climate outcomes.