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New Jersey has issued its largest-ever penalty against a data center, fining the DataOne facility in Vineland $1.07 million for installing and running 62 large natural-gas generators without state air permits.
The Department of Environmental Protection announced the penalty Tuesday. Under the order, the company must obtain the permits within 45 days or stop operating the equipment. DEP Commissioner Ed Potosnak said the action shows these facilities “will not be constructed or operated with impunity” in New Jersey.
But the numbers behind the fine tell a bigger story than the headline figure.
A power plant, off the books
Inspectors found 62 generators rated at 1,982 kilowatts each during a July 29 visit. They had not been there at the previous inspection in December. Taken together, that is roughly 123 megawatts of generating capacity, the output of a small power plant and more than a third of the campus’s planned maximum.
The site is designed for 14 data halls with a combined capacity of 300 megawatts.
State law is clear on the threshold. A preconstruction permit and operating certificate are required for any generator rated at 37 kilowatts or higher, and DataOne had neither. Each of DataOne’s units was more than 50 times that size.
Air permits matter because they set emission limits and require monitoring and recordkeeping. Without them, regulators have little record of what came out of the stacks. Natural-gas generators emit carbon dioxide, nitrogen oxides, carbon monoxide and other combustion pollutants.
An advocate interviewed by 6abc said the lack of permits means there is no documentation to show what was happening at the site.
Reporters with drones got there first
The generators did not come to light through a routine state check. Floodlight, a nonprofit climate newsroom, first revealed the tractor-trailer-sized generators last month using thermal drones. Its footage showed at least 45 of the 62 generators running in mid-August, and imagery from a data intelligence firm appears to show 25 of them operating in late June, weeks before DEP’s visit.
At the time, a DEP spokesperson confirmed no permits had been issued and no applications were under review for generators at the site. A former EPA air enforcement chief told Floodlight the company seemed to believe it was “better to ask for forgiveness than for permission.”
Big fine, bigger deal
The penalty is a record for New Jersey, but it is small relative to the project. Amsterdam-based Nebius Group signed a $17.4 billion deal with Microsoft last year to operate the campus through 2031. The $1.07 million fine equals less than one-hundredth of 1% of that contract.
Environmental advocates welcomed the enforcement but questioned whether the penalty would meaningfully affect the company.
In a statement, a DataOne spokesperson said the company is moving to “low-emission, quiet fuel cells” as its permanent power source, disagrees with the state’s temporary generator determination, and will apply for the air permits while it talks with DEP.
That transition has hit its own snags. Vineland officials halted work last month after crews began building a liquefied natural gas tank and fuel cell units before permits were approved. The fuel cells also run on gas. A Bloom official testified at a planning board meeting that, once complete, they could emit more than 2 billion pounds of carbon dioxide a year.
Why this matters beyond Vineland
DataOne represents a new model New Jersey is only beginning to regulate. It is the first data center in the state seeking to build its own power plant. The approach is spreading: nearly 60 data centers nationwide are planning their own gas plants, according to energy analytics firm Cleanview.
Gov. Mikie Sherrill has made data center oversight a centerpiece of her energy agenda. A law signed in July requires data centers to supply their own clean energy and places them in a separate rate class to protect other customers’ bills. A second law, signed Aug. 27, requires operators to report energy and water use to the Board of Public Utilities twice a year.
Critics say that isn’t enough. Sherrill told Politico this week she opposes a statewide moratorium on data center construction, drawing criticism from environmental activists pushing for one.
Neighbors: ‘Everything was done by the books’
For residents near the Cumberland County site, the fine confirms long-standing suspicions. The plant sits roughly a mile from two schools. Neighbors have filed a state lawsuit over a constant humming noise many suspect is linked to the generators, and the lawsuit alleges the county health department cited DataOne in March for nighttime noise violations.
Related: NJ Bill S731 Can Shield Ratepayers From Data Center Power Surges
What happens next
DataOne has 45 days to secure permits or shut the generators down. Construction on the campus is expected to finish in late December.
Residents anywhere in New Jersey who suspect unpermitted equipment, excessive emissions or other environmental violations can report them to DEP’s 24-hour hotline. The number is 1-877-WARNDEP (1-877-927-6337), and the WARN NJDEP app lets users pinpoint a location by GPS and submit photos with their report. Callers receive a case number, which makes it easier to follow up.
Sources:
- https://www.datacenters.com/nebius-new-jersey-ai
- https://newjerseymonitor.com/2026/09/22/nj-vineland-data-center-fined/
- https://6abc.com/post/vineland-data-center-fined-107-million-air-pollution-violations/19859640/
