Powering The Machine, Draining The Planet: Whether U.S. Environmental Law Is E onmental Law Is Equipped t quipped to Regulate the Ener o Regulate the Energy and W gy and Water Demands of AI Data Centers

This research paper examines whether the National Environmental Policy Act, the Clean Water Act and the Clean Air Act are equipped to regulate the energy and water demands of AI data centers. It finds structural gaps in all three: NEPA only applies to federal actions, so most privately funded data centers never trigger a review, and the Clean Water Act regulates water quality rather than the quantity a facility withdraws. The author points to Virginia, Arizona, Louisiana and Wyoming as places where data centers strain electricity grids and water supplies without any federal accounting for the cumulative impact. It closes with five proposed reforms, including mandatory disclosure requirements, federal water withdrawal standards and updated NEPA thresholds.