DataOne fined $1.07 million for unpermitted generators in New Jersey

New Jersey regulators have imposed a $1.07 million environmental penalty on DataOne, the largest fine ever issued to a data center in the state. The penalty stems from the operation of dozens of large natural-gas generators at the company’s Vineland complex without the necessary air-quality permits.

The facility, located approximately 40 miles from Philadelphia, is an AI infrastructure project intended to support Microsoft’s growing demand for computing capacity through a $17 billion arrangement with provider Nebius. State inspectors noted that while the equipment was not present during a December inspection, 62 truck-sized generators were discovered at the site by July. Thermal drone footage indicated that 45 of these units appeared to be operating.

DataOne has been granted 45 days to apply for the required permits to bring the equipment into compliance. While the state is currently allowing the generators to continue operating during the application process, failure to secure permits could result in a forced shutdown of the units. The incident has drawn criticism from environmental advocates regarding the scale of the fine and the decision to allow continued operation despite the lack of authorization.