New Jersey environmental regulators have fined DataOne $1.07 million for operating 62 unpermitted natural-gas generators at its massive Vineland data center site. State officials issued a 45-day deadline to secure proper permits or halt operations, marking the largest enforcement action against a data center in state history.
The Record-Setting Fine and Unpermitted Generators in Vineland
The facility, located off South Lincoln and Sheridan avenues in Vineland, came under scrutiny following a July 29 inspection by the New Jersey Department of Environmental Protection.
Inspectors found 62 1,982-kilowatt generators installed and operating at the Cumberland County site. Those engines were not present during a prior inspection in December 2025. Because New Jersey law requires state air permits for any generator with a capacity of 37 kilowatts or higher, the unpermitted equipment violated the New Jersey Air Pollution Control Act.
Under the state’s enforcement order, DataOne has 45 days to obtain the required permits for the equipment or cease any further installation and operation.
How Drones and Residents Exposed the Unpermitted Site
The state’s inspection followed public outcry and independent reporting regarding noise and emissions at the Cumberland County facility. A nonprofit newsroom, Floodlight, first revealed the tractor-trailer-sized generators in August after capturing them on thermal drones. At least 45 of the 62 engines were active when recorded.
Local residents had already complained about a persistent whining metallic noise from the campus, leading the Cumberland County Health Department to open an investigation earlier in the year and triggering a class-action lawsuit from neighbors. Tiffany Leone-Vespa, who lives about a mile from the facility, described constant humming and motor sounds through the night before noticing a slight reduction in noise around the time the state issued its citation.
Knowing that they didn’t have the proper permits, I’m concerned about what is emitting, what am I breathing in, what effect is it having on me, my family, everyone else, since they didn’t take the proper steps, Leone-Vespa told NBC10.
Matt Williams of Sustain South Jersey noted that a million-dollar fine amounts to a minor expense for a multi-billion-dollar corporate footprint.
Developer Response and the Shift to Fuel Cell Power
DataOne disputed the state’s findings while confirming it will comply with the administrative process. In a public statement, a company spokesperson said the developer disagreed with the temporary generator determination but would apply for the requested air permits while maintaining communication with regulators.
The developer also pointed to an ongoing pivot in its power strategy. DataOne plans to transition away from natural gas engines toward low-emission Bloom Energy fuel cells as a permanent power solution. The project initially proposed 32 high-efficiency natural gas engines and six diesel backup generators. While fuel cells reduce nitrogen and sulfur oxide emissions compared to diesel or standard natural gas turbines, analysts note the installation is estimated to emit more than 2 billion pounds of carbon dioxide annually at the Vineland campus.
The overarching facility is a massive regional project. Nebius Group, based in Amsterdam, secured a $17.4 billion deal with Microsoft last year to operate the 587,980-square-foot campus through 2031. When construction finishes in late December, the campus will feature 14 data halls and a maximum capacity of 350 megawatts, positioning it among the largest data centers on the East Coast.
Broader Political Friction Over New Jersey Data Centers
The Vineland penalty highlights a broader political debate over how New Jersey regulates the surging power and water demands of artificial intelligence infrastructure. Governor Mikie Sherrill, who took office in January, has signed legislation requiring data center operators to report their semiannual water and energy usage to the state, aiming to protect resident utility bills from spiking.
We are putting power in the hands of the people and ensuring this industry works for us, on our terms — not theirs. Data centers will pay their fair share for energy, be accountable for their water and energy use, protect our environment, create good-paying union jobs, and invest in communities.
Photo: New Jersey Monitor
Gov. Mikie Sherrill
Activists like Matt Smith of Food and Water Watch continue to call for a statewide moratorium on data center construction, a step Sherrill has publicly opposed.
Meanwhile, local campaigns led by residents such as Zac Landicini continue to monitor municipal and environmental developments closely. DataOne maintains that the center will ultimately benefit Vineland by creating more than 200 permanent jobs, serving as a primary taxpayer, and supplying weekly produce to low-income residents via an adjacent agricultural project powered by site waste heat.
NJ data center fined $1.07 million for air pollution violations
