New Jersey has fined the DataOne data center $1.07 million after investigators found 62 natural gas generators on-site without required air permits; thermal drone imagery reportedly showed 45 units operating. The campus, built for Nebius and slated to support Microsoft, faces emissions concerns and regulatory action under the state's Air Pollution Control Act. DataOne says it disagrees with the determination but will apply for permits and has 45 days to secure approvals while continuing operations.
New Jersey Fines Data Center $1.07M After Drone Exposes 62 Unpermitted Gas Generators
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New Jersey regulators have issued a $1.07 million penalty after investigators determined a data center had installed dozens of natural gas backup generators on-site without required air permits. The enforcement action follows reporting and thermal imagery that identified 62 generators at the DataOne campus, 45 of which were observed operating during the probe.
Investigation and Findings
A local farmer photographing a nearby golf course first noticed equipment appearing on the campus, prompting reporting by nonprofit newsroom Floodlight and The Guardian and a subsequent inspection using a thermal drone. The state Department of Environmental Protection (DEP) said the drone imagery and follow-up work showed at least 45 generators running and that none of the 62 units had both the preconstruction permits and operating certificates required under New Jersey's Air Pollution Control Act.
Capacity, Permits and Emissions Concerns
Each generator is rated at 1,982 kilowatts, for a combined capacity of roughly 123 megawatts. The DEP noted that any individual generator with a capacity of 37 kW or greater requires prior approval, which explains why the unpermitted units triggered enforcement. Regulators also flagged potential air-quality impacts from the gas-fired units, including emissions of carbon dioxide (CO2), nitrogen dioxide (NO2) and carbon monoxide (CO).
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DEP Commissioner Ed Potosnak said the penalty is by far the largest ever taken against a data center in New Jersey and may be among the largest such actions nationally, emphasizing the state's commitment to regulatory oversight and protecting communities and ratepayers.
Company Response and Next Steps
The facility was built for Dutch cloud AI company Nebius, which has said the site will deliver AI infrastructure to Microsoft later this year. DataOne issued a statement saying it 'disagrees' with the temporary generator determination but that it will apply for the necessary air permits and is in communication with the DEP about the findings and a transition timeline to fuel cells. State officials have given DataOne 45 days to obtain the required permits; the company may continue operating the generators while it seeks approval.
Microsoft declined to comment on the enforcement action.
Context
The case underscores growing regulatory scrutiny of large data center projects that rely on on-site fossil fuel generation for resilience. It also highlights how community reporting and remote-sensing tools such as thermal drones are increasingly used to identify environmental compliance issues.
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