Environmental Protection Agency (EPA) Administrator Lee Zeldin says the agency will be central to making the United States “the AI capital of the world,” a goal he outlined in a recent op-ed for The Hill and reinforced in a roundtable with data center executives at the White House this week.

“Artificial intelligence is the next great American frontier,” Zeldin wrote. “A core pillar of my Powering the Great American Comeback Initiative is making America the AI capital of the world, and the Environmental Protection Agency will be critical in that mission.”

Zeldin said the Trump administration’s AI Action Plan focuses on three priorities: accelerating AI innovation, building infrastructure such as data centers, and sharing AI technologies with allies. He framed the EPA’s role around deregulation and permitting reforms, including streamlining approvals for power plants, high-voltage equipment, and water use.

One proposal under review would establish a nationwide Clean Water Act Section 404 permit for data centers, removing certain pre-construction notification requirements. Zeldin said this would help meet growing demand for hyperscale data centers, which he noted could consume between 60 and 124 billion liters of water annually by 2028.

Supporters argue the push could revitalize contaminated properties. “President Trump’s desire to convert Brownfields and Superfund sites into data centers promises transformation to largely low-income and disadvantaged communities seeking revitalization, job creation and long-term prosperity,” Zeldin said.

Industry leaders welcomed the deregulatory stance. A data center executive at the White House roundtable, who asked not to be named, said, “Permitting delays are one of the biggest challenges we face. Having EPA streamline these processes could accelerate investment and keep the U.S. globally competitive in AI.”

But environmental advocates expressed concern about the scale of deregulation and its potential impacts.

“This is being framed as environmental stewardship, but the reality is that massive data centers consume extraordinary amounts of water and energy,” said Rachel Clemmons, policy director at the nonprofit Clean Water Now. “We need guardrails to ensure communities don’t bear the costs in the form of water shortages, pollution, or higher utility bills.”

Others worry about the precedent of loosening environmental rules for emerging industries. “It’s important for the U.S. to lead in AI, but not at the expense of environmental protections that took decades to build,” said David Kim, an energy policy analyst at Georgetown University. “Deregulation can speed projects up, but the risks—from water consumption to air quality—need to be carefully weighed.”

Zeldin countered that the agency can balance both priorities. “We choose to protect the environment and grow the economy simultaneously,” he wrote.

With U.S. data center demand projected to more than triple by 2030, the debate over how to balance economic growth, technological leadership, and environmental safeguards is likely to intensify.