Novva’s journey to establish Utah’s largest data center campus has been a tumultuous one, filled with unexpected challenges and creative solutions. The company’s CEO, Wes Swenson, initially praised the region for its many advantages, including low disaster risk, a growing international airport, and cheap electricity. However, Novva soon found itself at odds with the local utility, Rocky Mountain Power, which could not provide the necessary energy until 2031.
Faced with this setback, Novva made the bold decision to build its own natural gas plant near the data center to meet its power needs. But even this solution would not be ready until 2027. In the meantime, with a hyperscaler client eager to utilize the facility, the company turned to a fleet of diesel- and gas-fired generators, despite their inefficiency and high pollution levels.
To operate these generators, Novva needed permits from the state, which came with strict emissions limits. The company also sought a presidential exemption from the EPA to bypass Clean Air Act standards, citing national security interests and the need to stay ahead in AI development. However, the exemption was not granted, and Novva continues to rely primarily on grid power.
Novva’s experience highlights the challenges that data center developers face in securing power for their operations, particularly in the era of AI expansion. Many companies are turning to on-site solar arrays, batteries, and natural gas plants, as well as deploying generators as a temporary measure. This trend towards “behind-the-meter” generation is becoming more common as companies seek to navigate regulatory hurdles and ensure reliable power sources.
The location of Novva’s data center in the Salt Lake City area also poses environmental challenges, with concerns about wintertime inversion pollution and summertime ozone smog. While the company’s attempt to obtain a Clean Air Act exemption was ultimately unsuccessful, it sheds light on the lengths to which developers are willing to go to meet their power needs in a rapidly growing industry.
Overall, Novva’s story serves as a cautionary tale for data center developers, highlighting the importance of balancing power demands with environmental considerations and regulatory compliance in an increasingly complex and competitive landscape. Recently, Novva faced a setback when their exemption request was not granted. However, an analysis conducted by the Environmental Defense Fund revealed that approximately one-third of the over 500 exemption requests they reviewed were approved. This indicates that there is a chance for companies like Novva to receive exemptions in the future.
The status of Thunderhead Energy’s exemption request remains uncertain, as the company did not respond to requests for comment. The EPA stated that they had no involvement in the decision-making process for granting exemptions and referred inquiries to the White House, which then redirected them back to the EPA.
In order to qualify for exemptions, companies must demonstrate that the technology needed to comply with the Clean Air Act rule is unavailable and that the facility’s operation is in the national security interests of the country. Both Novva and Thunderhead argued that they met these criteria, with Novva claiming that the exemption would help address global challenges and Thunderhead stating that their projects were essential for national security-related computing capacity.
It is a common practice for companies to emphasize national security concerns when applying for exemptions. Swenson, a representative for Novva, highlighted the importance of keeping American data within the country to maintain national security.
Both companies also asserted that they had already implemented the best available technology to reduce emissions but still required an exemption to exceed allowable limits. Novva, for example, pointed out that the control technologies necessary to meet emission caps while installing additional generators were not yet available.
Novva is currently in the process of upgrading its state air quality permit and is expected to have its natural gas plant operational soon. If the updated permit is approved, the company will likely be permitted to increase its emissions.
In conclusion, while Novva’s exemption request was not successful, the possibility of receiving exemptions exists for companies that meet the necessary criteria. It is essential for companies to demonstrate the unavailability of technology and prove that their operations serve national security interests to secure exemptions.
