Shifts in NEPA Affecting Data Center Development
Summary
- Major shifts over the past year regarding the National Environmental Policy Act of 1969 (NEPA) created both opportunities for more streamlined NEPA assessments and potential for delays from challenges to agencies’ new regulations or guidance.
- The U.S. Supreme Court issued its first major NEPA opinion in over two decades.
- The Council on Environmental Quality (CEQ) rescinded its NEPA implementing regulations.
- These shifts may portend a more streamlined NEPA process as federal agencies and private sector partners are seeking rapid development of data centers.
The National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. §§ 4321 et seq., has experienced major shifts over the past year, creating both opportunities for more streamlined NEPA assessments and potential for delays from challenges to agencies’ new regulations or guidance. In particular, the Council on Environmental Quality (CEQ) rescinded its NEPA implementing regulations, and the U.S. Supreme Court issued its first major NEPA opinion in over two decades.
These shifts, which generally portend a leaner NEPA process, come at a time when federal agencies and private sector partners are looking to achieve rapid development of data centers to meet the population’s data-processing needs. Data centers are essentially physical locations to store and process data; they also require significant amounts of energy and water. With the recent NEPA changes, data center developers and other complex project proponents may see a more streamlined NEPA process.
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Published in Natural Resources & Environment Volume 40, Number 2, Fall 2025. © 2025 by the American Bar Association or the copyright holder. All rights reserved. This information or any portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.
