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U.S. govt says Musk's gas turbine generators for xAI aren’t exempt from permits — EPA ruling closes local loophole that allowed Musk to get power from temporary on-site power generators

The EPA issued a ruling removing permitting exemptions for gas turbine generators used at AI data centers.
The rule closes a local loophole that allowed Musk’s xAI site to run generators without a permit.
The rule applies to temporary portable turbines used while awaiting a grid connection.
OpenAI and other hyperscalers may need to adjust power strategies due to new permits.
The federal Clean Air Act governs the new permitting requirements for gas turbines.
The ruling targets on-site power for AI data centers amid grid strains from growing compute demand.
The rule increases regulatory burden for deploying portable and temporary turbines.
The ruling may affect other AI data center projects relying on portable generators.
The report ties the EPA ruling to the xAI situation in Memphis and a regulatory push.
The EPA rule aligns with federal standards under the Clean Air Act.

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