New Jersey's DEP fined DataOne $1.07 million after inspectors found 62 large natural-gas generators operating without required permits at the Vineland data center. Each generator is rated at 1,982 kW, well above the state's 37 kW permitting threshold. The DEP ordered DataOne to obtain permits or shut the equipment within 45 days; the company says it will seek approvals and is transitioning to Bloom Energy fuel cells. The action follows drone-based reporting of active units, local noise complaints and a class-action suit, and comes amid heightened state oversight of data centers.
New Jersey Slaps DataOne With $1.07M Fine After Discovery Of 62 Unpermitted Generators
New Jersey hits data center with record $1.07 million fine over unpermitted gas generators hero image
New Jersey's Department of Environmental Protection (DEP) fined DataOne $1.07 million after inspectors found 62 large natural-gas generators operating at the company's Vineland data center without required state permits — a violation of the New Jersey Air Pollution Control Act.
What Happened
Inspectors first observed the generators on July 29; the DEP said the equipment was not present during the agency's prior inspection in December 2025. State law requires a preconstruction permit and a valid operating certificate for any generator rated at 37 kilowatts or more. Each of DataOne's 62 units is rated at 1,982 kilowatts, far exceeding that threshold.
Agency Response and Deadline
DEP Commissioner Ed Potosnak called the penalty "by far the largest ever taken against a data center in New Jersey and possibly one of the largest such actions in the nation," saying the enforcement sends a clear message that data centers "will not be constructed or operated with impunity in this state." The DEP ordered DataOne to obtain the required permits or shut down the generators within 45 days. The company may request an administrative hearing within 20 calendar days.
DataOne's Position
DataOne said it disagrees with the state's characterization of the generators as unpermitted but will pursue the necessary approvals. The company said the generators were a temporary measure while it transitions to Bloom Energy fuel cells as a permanent on-site power source, for which it said approvals are already in place.
Reporting, Community Concerns and Legal Action
The enforcement follows an investigation by Floodlight and The Guardian that used thermal drone imagery to document generator activity at the Vineland site, recording at least 45 of the 62 units operating in August. Nearby residents have complained of noise from the complex, and a class-action lawsuit has been filed over disturbances.
Project Context and Broader Regulation
Local reporting describes the Vineland complex as a 2.4 million-square-foot flagship project for DataOne, which is its own owner, operator and builder. Amsterdam-based Nebius Group is slated to manage the facility’s internal infrastructure to support Microsoft’s AI platform, according to WHYY. The fine comes amid heightened scrutiny of data centers nationwide: New Jersey recently enacted laws requiring twice-yearly reporting of data centers’ energy and water use and obliging them to secure clean energy or pay into a separate rate class to protect other ratepayers. Texas has also paused permit processing for certain data center projects while auditing the industry’s grid and water impacts.
Why it matters: The size of the generators and the scale of the fine highlight growing regulatory pressure on large data centers to meet permitting, environmental and community-impact requirements as they expand to support AI and cloud workloads.
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